Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Hi Bridgedog m'learned friend, looking at the charts, the shares of DTY are now at a discount to its all time high, of over 90%! This is usually a buy signal to me.....but I have seen shares fall to a discount of 95% before they recover. So maybe they could even go to £1.39 before a recovery. My only concern is whether they can avoid going bust. Presumably, if they need to come" cap in hand" and beg their shareholders for more cash, they will have a rights issue. At the current price, these shares are beginning to look tempting. What do you think?
Where are the Directors? They obviously do not think this share is cheap enough!
Ahha you make a good point, didn’t mean to be rubbing it in the face of any holders, seemed a bit quiet on here so didn’t see the harm, plus I was open about my short position and tbh wanted to warn any PIs about what I thought was coming. Closed out my position now and see that Granular are still adding. Human nature being what it is there could be a rise from here. Will be keeping and eye on it and if it comes close to £4 I’ll be opening another position for the CMA report in April/May which is clearly going to decimate the unprofitable parts of the business. I think they will need to cut down the entire business, sell off what they can on the funeral side and then have a relook at the transformation plan. I’d give it 3 years and you might have a smaller, leaner business to build on.
Ada Boy Bridgedog! It makes a reassuring change to find someone who really knows what he's talking about on this site! What a tragedy that the Director's pension might be under threat. Well they will not be getting any of MY money to bale them out! I've been around a bit and I know that when we enter a major bear market share prices can take a long time to wind down from top to bottom......often in the most severe cases a share , rightly or wrongly can fall from 90 -95% of a previous all time high. In the worst scenario, it can go completely bust! The most important question to ask is can this business survive? The jury is out on this one at the moment.
My feeling is that it really ought to. This should be an ultra safe defensive stock. But as my learned friend Bridgedog rightly surmises, there could be further falls ahead. My deepest sympathy and condolences to present share holders!
Had my accountant friend look at the results, the accounting changes from last year and the inclusion of trust assets and income on the balance sheet. Agrees it’s a complete farce but allowed in the rules, also pointed out likely to be a £20m hole in the pension to be filled this year.
A £3m sale at 8 in the evening? Never seen that before.
might have called that wrong
Also for today I predict a massive sell off at the close
I think this will come back a bit but continue a down trend over a few months. Too much uncertainty before the CMA initial report out in April/May. The CEO statements have paved the way for a major restructuring and maybe the rights issue/cash raising that noheartss mentioned on here earlier today. In terms of buying for the medium term I would wait for that all to pan out. Plenty of room to trade if you want a quick turn around. Wouldnt be surprised to see it go back up to £4.30 level but ultimately heading to £3p imo
"Nice if you've got the money to see it through" Where do you see this going? There must be a floor to the decline. Someone will want to buy this dog at some price. I wonder if the Directors will start buying back in.....I'm sure they can afford it!
Incidentally, I agree about Rockhopper......maybe two years is about it. But it is looking really grim right now!
Big sell in the background atm
Dignity trades is a war of the trading bots at the moment. Automatic bot trades moving the price for the large buyers/sellers. Multiple small buys to keep the price afloat before the huge sell kicks in. Nice if you've got the money to see it through.
I was actually going to mention Rockhopper, I was invested in this in the early days and have always kept an eye on it. Need to do a bit more research on it now, but I saw someone mention there is some kind of arbitration in the pipeline that could bring in a large settlement. The big risk is PMO who are over leveraged and may struggle with a prolonged oil price squeeze. Its unlikely now that RKH will get funding to open up a new oil production frontier in the Falklands with the current oil price climate, one to buy and hold if you have a couple of years. Another one that could see 10x from here.
An oil share I have been following for a long time is Rockhopper, in the Falklands. It has discovered massive amounts of oil and over the years has progressed slowly towards recovering the oil. Their share price has fallen from over £5.00 a share when they had just found the oil and no where near as close to extracting it. Obviously finance is the problem and they now stand at a lowly .07p a share, which I believe is grossly undervalued and this share could soar. But in the present climate, who knows what could happen.
I totally agree that at some stay oils will become popular again and now is a good time to buy. But they might become even cheaper for a while.
Haha yes would have been a Woodford buy.
Not sure about Pheonix, I wonder as they are now so involved with the board that they were in the close period. They are now of course able to sell what they want (£600k sells??), they have to advise of any 1% change of holding, if the TR1s start flooding in they could indicate a mass sell off over the next few weeks. They must know the business is done for. I always support PIs buying on the bounce because we are more flexible than the big institutions but I would be careful to let the dust settle here.
Granular Capital bought in recently 3%, ironic considering the name,I dont think they did much granular level of analysis. They will be at around a 25-30% loss currently and must be considering their options.
Bridgedogg1,
Appreciate your input. What on earth were Phoenix thinking here and why did Woodford miss this one ?
Results look bad but a disaster is hidden between the lines.
Transformation plan on hold.
CMA investigation likely to impact size and profitability of business = mass closures and restructuring ahead. Will be unable to pay debts. Expecting some kind of cash realisation in near term to pay down debt.
Ahha I think the last broker target was £5! We’ve seen new large holders come in and I think they are banking on a turnaround, the long term price action combined with the relatively high revenues make it look like it could be under valued, but I really don’t think it is. I originally started researching the company with a view to buy based on these factors but quickly changed my mind. It’s the first time I’ve put in a lot of work looking at accounts and doing a deep dive into a company’s financials as I usually go for event driven investments. I wouldn’t be surprised to see them out of business this time next year, possibly a private equity buyout at knockdown prices. Shares will get demolished to keep the doors open and pay off debt. I wouldn’t suggest a buy at and price above £3 and only then after they have sorted the debt out in some way.
Phoenix have people/person? on the board so they may well be in a closed period until after the results come out. I don’t know if this is the case or they work on a Chinese walls basis, but Phoenix is key to propping you the share, if they decided to get out it would be a bloodbath.
I could be wrong but I’ve put my money where my mouth is on this one.
Thought provoking comment. I have been of the opinion that I would not consider buying this share until I reached £4.50p
But maybe it is better to wait until after the results before making any buying decision . The points you raised about debt and the possibility of no dividend being paid are certainly important points to consider. Also, the point I have made all along that no Director has shown any interest in these shares since they bailed out at the top of the market.
On the other hand, Pheonix continues to hold a significant holding in this shares and must be aware if the dividend is to be stopped. They also are in a business that should be extremely defensive. It has always been a rather boring share, but over the years it did rather well. Im surprised there is not more broker comment.....over the last five years or so, most of the recommendations have been to buy or hold at a price of £25.00plus to £5.70. I think in today's volatile market, there is no hurry to buy any share. Best to wait and see!
Nice to see your comment Bridgedogg1
And to see the share price below £5.
A truly rancid company
So for those like me who think this company is going down the toilet the results will be out in a few days we will know either way. Has the restructuring worked - 1% of outlets given rebranding and staff role changes. How has the business faired with lower prices - probably not very well. Has market share been taken by competition - was only majoring market share through acquisition. Will the dividend be paid - highly unlikely meaning this will be a non income stock and income funds that hold it will have to sell. Will it even earn a profit - year on year decreases indicate this is a pivotal year, might see losses for the first time. . Will the debt covenants be breached - highly likely, already had been at the last report. will the largest asset be ‘goodwill’ - yes about £600m worth of goodwill vs £100m of tangible assets and £500m of debt.
Will dignity have to restructure the debt/raise cash/use credit facility - who knows??? I reckon so, the company has reached a tipping point. Only hope is for an immediate mass pandemic of coronavirus, still might not come soon enough. Screaming sell. May well bring going out of business / low ball takeover on 2020.