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According to lse they should have been yesterday.I rang the company yesterday and they said someone would call me back but have heard nothing from them. I’m just hoping they’re mulling another bid for the company and that’s why the results are late. One or two comments about this over on ADFN site chat.
Does anyone know when results due, co web site just states September
Baillie Gifford's insightful article sheds light on the promising future of cloud computing and data centres. The value of DGI9's data centre holdings is expected to increase, as the vast amount of data is transmitted through undersea cables.
Damofarl, nice seeing you here. Boring predictable visible income - with some deep value too!
Agricore; this is our kind of bag. Value, yield. Boringly predictable visible income.
The SP has never recovered from over reaction to costs of funding commitments/debt obligations, seemingly blind to the sustainability of such costs from income. The reavulatuon of it's positives is inevitable.
Nice 5% gain on the week. I've been pondering my investment here and what have I missed? But actually the more I think on it the more I realise this is a high yielding defensive play with strong macro tailwinds and diversified execution risk, along with capacity investments which will steadily fill simply due to simple truths like: "Only 10% of enterprise IT spending has moved to the cloud with $600 billion a year still to move"
Have a good BH w/end all
David Stephenson is bullish on DGI9:
"DGI9 post the Aqiva deal has its financial challenges but the core businesses are churning out cash and full dividend cover within the next year or so looks completely achievable. To repeat the point (it hasn't) gone ex-growth and there is every possibility that dividend payouts could increase.
As for valuations... discount rates look fairly sensible and I would repeat another earlier point – most listed businesses in the towerco and data centre space trade at far, far higher valuations. The German listed Vodafone towers business named Vantage Towers – where private equity giant KKR has bought a huge slug of the business – is trading at over 42 times its forecast earnings.
(Source: https://citywire.com/investment-trust-insider/news/david-stevenson-digital-funds-are-too-deep-in-the-dog-house/a2413348?re=107401&refea=1125685)
Arga, what's cooking?
It was a takeover target article which made me look at DGI9. This was covered by broker Peel Hunt, who saw it as having attractive assets: https://www.ii.co.uk/analysis-commentary/eight-investment-trusts-could-be-takeover-targets-ii528755
Reading more, I was concerned to read about Jefferies downgrade of some 6 months ago and the negative view held by The Trots: "am now of the view that (DGI9) perhaps it is best avoided. I perused the 2022 accounts this morning and came away distinctly unsettled."
Piling on the negativity I noted various negatives:
1/ the Investment Manager who left,
2/ the uncovered dividend,
3/ the apparent "black hole" in debt,
4/ the growth discount,
5/ Arqiva inflation-linked swaps and a
6/ dodgy NAV.
I hope to briefly cover these points and why I chose to invest here.
1. There is a new Investment Mgr - as of 13th June '23 - ex Vodafone - that "deflator" is dealt with (and dare I say the replacement looks more credible than the original!)
2. The uncovered dividend. This is purely a timing issue. There are 3 projects which will bring cash flows which will more than cover dividends and costs. From 0.4X to 1.6X comprising Verne Ramp Up, the Subsea Cable commissions H2 2024, and Arqiva growth.
3. The black hole is debt yet this has been refinanced on 5 year terms at fixed rates as of 5th July '23.
4. The growth discount. If people want to risk their money on fixed rate bonds crack on. I am more comfortable sitting on *INFLATION-LINKED* income, with *CAPITAL APPRECIATION*. Neither of these things can occur with bonds. Discount it all you like, but what I know as an investor is that what counts is controlling for the downside risk (infrastructure is a "real" asset with index-linked returns) and what counts is lifetime CASH. And DGI9 seems capable of generating plenty of it from next year - and has enough cash to keep paying dividends until then.
5. Arqiva's swaps have been collared. The gist of this is that there's a limit to how much high inflation can hurt DGI9 over the next 4 years. Bear in mind, too, that falling inflation reduces the negative affect of the swaps in any case. I'm of a mind that inflation could surge again, so the collaring is a positive.
6. Dodgy NAV. Well the syndication of an asset is a great move here and will "prove" the value of the NAV. That's in progress and should finalise in this quarter. A more normal discount rate should be 20% maximum so I see a 6o% upside from here (at 51.4p) just to return to that level.
Therefore the 6 concerns appear to be addressed or at least in hand. Meanwhile the yield is an attractive 12% where there appears to be grounds to think that a 50%-60% growth in dividends is possible (the 1.6X cover) and/or buy backs, or reducing debt.
Given I have zero telecoms and infrastructure this provides some diversification for me too.
GLA
An interesting “insight” article from Baillie Gifford highlights the future for cloud computing and data centres. DGI9’s data centre holdings could become even more valuable. And all this data travels through undersea cables.
https://www.scottishmortgage.com/en/uk/individual-investors/insights/ic-article/sm-articles-2023-q2-the-rise-of-cloud-computing-10020406
Getting hammered down again. Farcical.
See if last low 51.5p is broken b4 adding more.
Up 10.22% today. I’ll take that, thank you.
Let’s see if this rise holds or the auto bots keep dumping.
Good timing and content of the Rns.
The Board reaffirms it is targeting an aggregate dividend of 6.0 pence per Ordinary Share for the year ending 31 December 2023[2]. The initiatives above are believed to be accretive to dividend cover, however for the avoidance of doubt, and as stated before, further capital being invested into the Investee Companies is not forecast to be required to achieve a future period dividend covered by the operating cash flow of the Investee Companies. This is expected to be substantially achieved by 31 December 2024 as a result of the continued maturity of the high-growth platforms (particularly data centres and subsea fibre), the reduction and ultimate expiry of the accretion payments made by Arqiva (in relation to its inflation linked swaps) and the future forecast IRU sales from the Company's investment in EMIC-1.
The Board has considered reducing the above target of 6.0 pence per Ordinary Share for the year ending 31 December 2023 and understands some shareholders would support such a reduction. However, on balance, the Board considers it appropriate to maintain the target given: the route to a covered dividend outlined above; the income requirements of many shareholders; and the relatively limited absolute sum that would be saved by reducing the 6.0 pence target.
Bottom in?
Added more again on the big dip today.
So the journalist says "My guess is that after the board cut its dividend, a private equity player will pounce and buy the quality assets, especially its fast-growing Icelandic data centre business." So he is suggesting that DIG9 will sell all the quality assets and keep the poor quality ones, this doesn't make sense, the PE firm miight as well put an offer in to buy DIG9. I'd vote against any offer less than NAV.
David Stevenson in today’s FT thinks Digital 9 is ripe for a takeover by a private equity company. It has valuable assets in Nordic data centres and a fast growing Icelandic data centre business. Hope he’s right.
This one certainly tests your patience.
“Trying” to accumulate.
There was an interesting discussion on the Money Maker podcast where Anthony Leatham head of Investment Trust research at Peel Hunt felt that DGI9’s previous problems had now been resolved and the RPI-linked revenue meant the trust was now vastly undervalued. As it is on a 44% discount and yields 10.59% there is a huge margin of safety.
AdaWells the trades are not misrepresented, its just a guess by this website and any other website.
I've witnessed on multiple occasions that the trade orders have been misrepresented for both my trades of 136 shares today, and 26,796 shares on the 28th of June.
LSE.co.uk has reported them both as sell orders when they were in fact both buy orders. I wonder how many other trades are misrepresented and how this effects market sentiment.
Gailina Liew's appointment as an independent non-executive director for DGI9 is a brilliant move for the company as it brings a wealth of experience and expertise that can significantly contribute to its growth and success. With her legal, scientific, operations, and international business executive backgrounds, Liew possesses a diverse skillset that can offer valuable insights and guidance to DGI9's operations and strategic decision-making processes. Her extensive knowledge in these areas can help identify and capitalize on opportunities for expansion and innovation within the infrastructure industry. Furthermore, Liew's appointment can instill confidence among investors, as her impressive background and reputation may positively impact the company's share price, potentially leading to a bounce back.
Another good buying opportunity. I just cost averaged down adding a further 25k+ shares to my holding.
Somebody has spat the dummy out...down over 7%
https://www.theaic.co.uk/aic/news/citywire-news/david-stevenson-digital-funds-are-too-deep-in-the-dog-house
Citywire article if you can’t log in to that site.