Davies acted quickly to sign Aaron Ramsey and Marcus Tudgay on emergency loans and believes the arrivals come at a crucial time in Forest's season.
"I am pleased for the fans, for the dressing room and for everyone at the club," he told the Nottingham Post. "The timing is right, with regards to our current squad and the depth we have and also because it will give everyone a lift.
"It is a great opportunity for both players because this is a great place to play, the City Ground. But we are certainly delighted to have them.
"Our squad was very thin on the ground because we have picked up some horrendous injuries. The timing of new signings can lift everyone and hopefully these will have a big impact."