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Stifel has raised its rating on DGI9 to buy from hold today. Expect shareholder to get at least 40p from wind down in the near-medium term future and then possible value from Arqiva on top of that.
I voted against the wind down . I'd rather they took 10 years passively running the current assets out.
If they can't obtain scale, the reason for wind up, why not merge with CORD, to aid scale, and economies of scale. At least then those of us who believe in DGI9's assets can see and reap their fruition.
I don't dispute that they are getting a very good deal.
The question is, would our creditors allow us to wait for it to be snapped up by someone else if Ardian decide that they want an even better deal?
On the back of 33% revenue growth unlikely, as it would get snapped up by someone else, they are already getting it too cheaply
I hope this is a red herring, however is anyone able to definitivly answer this?
Is there any way that Ardian could either pull out of or renegotiate the Verne Purchase at the last moment to take advantage of the fact that we appear a distressed seller? (i.e. How binding and enforceable is the "definitive agreement" described in the 27 November RNS?) Obviously, if there are other potential buyers, they run the risk of loosing a sale which, if they have the funds, is likely to prove profitable to them. However this sort of thing happens all the time in the housing market and also seems to happen in the corporate market too - a recent example, of which I am all too aware, being the sale if IM Minerals Ltd by Pathfinder Minerals Plc to Acumen Advisory Group LLC where AAG dropped the price after the initially proposed completion date and PFP was in no position to object.
Https://www.economist.com/business/2023/12/20/big-tech-and-geopolitics-are-reshaping-the-internets-plumbing
These assets are in high demand, I see low risk in divesting at decent prices make no mistakes,this is value at its deepest and truth will out soon
The Verne deal is not over until it’s signed … and funds exchanged … look I’m long here … where in terms of risk reward I’m happy to keep a position otherwise I’d stay clear … while every 1p drop in holding average is a 4% gain with an unknown time period of realisation for any gains.
That’s high risk in my view.
There is not a high risk of bankruptcy in my view...I think it depends of 2 things, if you think the Verne sale completes and if you think Arquiva isn't a basket case (which I think it is far from)..I think the biggest thing weighing on it is the delisting, seen that many times, and I think it was premature to mention that before Verne even completed
Morning Star has a blank on holders as does the II investment site. The rationale is simple enough - high risk of bankruptcy, albeit reduced this week. Watch that gap close to 20.5p. Hedge funds will have worked out institutions are dumping and joined in the fun. The trades and intraday share movements are classic ... reminds me of Quindell back in 2014 was it?
However, I dug a little deeper with some spare time:
https://markets.ft.com/data/investment-trust/tearsheet/profile?s=DGI9:LSE
Gives an interesting view on recent share transfers across institutions. Around 17 million shares dumped to unknown holders with 6 million transferred to other institutions.
I have a core hold that I'm prepared to lock away for as long as it takes, but outside of that I look to day trade to get the average down selling into rallies and buying heavy dips.
Don't think it's a shorter..there is no rationale for doing that, if they remain short until delisting they would effectively lock in their eventual loss..more likely a fund without the patience to see this through, which is what is wrong with investing today ..no patience, ignoring deep value and fundamentals...really the mind boggles at who manages people money these days
Shorts have tried and tested methods … looking to close the gap from the spike a few days ago … it’s a game of poker as I intimated below volumes were light today algos taking it down 20.5p target as the high from the past few weeks …. Expect another 30% rally when verne sale goes through … say 26p open … by which time with that bought today I’ll have my 20p avaerage with those sales.
Fairly pathetic end to the week there with heavy selling all day...love to know which plonker is dumping this before it likely doubkes
I think they are likely to show their hand after Verne completes if they don't want it...else they have 3 weeks tops if they want Verne for themselves...of course perhaps with not so many investments left a takeover of all would be unlikely, but if there is no liquidity constraints why eould they accept any lowball in Arquiva...I think people misunderstanding the way that investment is structured tbh
TO would be the best as the bid will move up to meet the offer price and present shareholders an early exit opportunity. There must be someone out there looking this over at this MC, even if they'll break up the assets and sell them off post TO.
My list of catalysts:
-completion of Verne
-NAV calc
-results
-smaller investment disposal news
-t/o bid
-TR1 notification of whoever is selling now to say they stopped lol
I might vote against the wind down as I don't really want a delisting tbh, would rather it got taken out which I think is realistic given how cheap it is
Next trigger upwards will be shareholder approval ?
I should have said sit tight, I am invested, just not playing this game with whoever is dumping...why do that just a few weeks before Verne completion.. madness
I'd rather "sit it out" with an average of 20p rather than the 30p I first bought into in December. Each to their own.
I have watched the action here and hold, I think and institution is selling out, and may well have been for a while, every rise is heavily sold into and you know what fair play to them if they want to walk away on a whopping loss but I can sit it out thank you and get far better returns when everything is sold down in an orderly manner...a defensive minded investment trust should not be this volatile either, it will settle down once the latest NAV is released and Verne completes, so about 6 weeks tops for the uncertainty and games to go in in my view
5.00am sell of 230,000 on level II has been putting a ceiling on prices … seen this hedge fund do damage with Seplat and other UK stocks using HFT tactics …. This share is a game of poker … Rechecking I got 25.2p yesterday morning on the ISA for a small amount … remember they want your money and you want theirs ….
On this but does feel like it may have turned a corner today, I would hope on Verne close we could see 30p plus.
You don't often get to say that a share that has gone up 30% is still 30% undervalued. So I will!
Arqiva, ariva ariva! Next stop the arrival of KKK....
Adrian could pay off the revolving loan and buy out digital 9 entirely...based on current price...absurd. Aquiva is undervalued as it stands too imo.
" This is not a share to day trade" ... maybe a buy and hold now .... but I was buying 17-19 and selling 18-20 for a few weeks.... although was somewhat stunned by the intraday drop to 14por so ...... such is the market.
" or will be satisfied shortly before completion of the verne transaction.‘"
the management are presumably trying to say that the deal is not over until its signed .... but what a ********" way to make the statement .... and that's the problem .... the deals themselves bought by dgi9 seemed good value .... but to get caught out by interest rates rising is poor.