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HarChris, you don't get "it", do you?
I bought in the IPO float in 2013 and sold out a few months ago though I did trade it a fair bit too so my loss was real and painful but not as big as it could have been. It was a good story back in 2013, setting up a new facility in Cote d'Ivoire, on time to budget (no doubt the then Asian co-owners made sure of that) and a 1m plants a year nursery to revolutionise productiveness in the area. Don't hear much about the nursery these days, nor the RPSO certification, nor Guitry, nor the company owned plantations that were going to tie production, nor the fertiliser programme... Plant has never run above about 30,000 tonnes a year, about half capacity with an endless list of excuses and jam tomorrow.
Cashews are years behind and there is not been any realistic explanation or honest forecast along the way, frequently implication was 'imminent'. The next news will always be much better. Shareholders have been taken for fools.
With the assets they have this, objectively, is not expensive but the debt has crept up and is a material risk. With a new set of directors this could be a good investment but the board now needs clearing out. 10 years of failure, but directors fared alright with salary, share issues and buying out related party assets. Certainly not going to waste any more time on this, the current directors have no credibility whatever. If even Rugs has (nearly) had enough that tells a story.
Good luck all.
HarChris - i get what you are saying - but the frustration is they have attempted to pull the wool over our eyes
- We say they have a huge amount of skin in the game? presumably because they have tons of shares (around 35% of total) - well i disagree because of that 35% only about 8% have actually been purchased (that's assuming they laid out capital at the start rather than fund raise - i actually expect they did not put cash in themselves but lets pretend they did) - the remaining 28% has all been given to them out of the 3rd party transactions - and i've made my views on them clear.
- The Board have done very well, due to the above, on the back of poor performance - whilst long term retail shareholders are 70% down - the board are up - the boards % shareholding has stayed consistent and market cap is up 40% - they are doing ok.
everything you note below id be in agreement with if wasn't for the above - i can take losses when it aligns to a board with integrity and genuine drive to deliver value - sometimes things don't work out, i can take that.
The board here haven't done that - they have looked to take the easy route - slapdash delivery, self interested transactions and a complete lack of integrity.
however - the positive is i think its reached the end of the road for them now - they have taken us for mugs for a much as they can - their interests now have to be aligned with ours - the market sees how this has operated to date and i don't believe it can work again for them.
and for whatever influence this board can have or my/our small voices - i am going to continually call them out on it
Options are often an alternative to salary/cash payouts rather than in addition to.
And yes they all bought in at that placing at 5p, so not exactly seeing good returns on that money. There's no argument to say that they aren't aligned with shareholders, they are. Do they still make a living if they are unsuccessful, yes, it's their job and I assume you have one as well. where you get paid a salary that isn't totally linked to performance... They earn from their job either way and gain/lose on their shares based on success or not - they have a huge amount of skin in the game so they are as incentivised as they can be, the poor performance so far won't be for lack of trying.
As for PO prices, at least they've broken through the 3800 barrier after a few weeks of trying.
When did they take shares instead of salary HarChris? That just isn't true! They have taken part in the placing and had one foray un the open market but that is the sum of it. They have awarded themselves options which are mostly worthless thanks to their stewardship. They are certainly not aligned with me as they receive huge salaries relatively irrespective of performance. I can see sub 2p ๐ฅ as the market can see through BS. These directors should be falling over themselves to buy in the open market given the near 5% drop and their faith in the company but never gonna happen!
They are directors of a large mining business, of course they do well. Did you expect them to be on minimum wage?
They've taken tons of shares in place of salaries and are major shareholders so they aren't doing half as well as they would if they can turn the ship around and see a meaningful recovery in the share price - so their interests are certainly still aligned.
IM SURE the directors do very well here ALWAYS jam tmw here for so many years . VERY .A lot OF cash involved in farming etc .Not saying it happens here but 9/10 it happens
Every time there is any weakening in production figures pricing or extraction rates the last 10 days prior to the statement always gives confidence going forward! Uncanny. Almost unbelievable ๐ณ! Stunning! And straight from the DKL playbook. Forget 'jam tomorrow' this is CPO tomorrow company. As for our recently inspired seller. Wow! What foresight! You would almost pay to be invested here.
Thanks Lincoln!
Think there is a few of us looking at that type of loss Fenlli.
what really winds me up, and hence why i never let it drop - the loss we have experienced is a straight transfer from us to the board - you can actually work it out by looking at the 3rd party transactions, the shares created on the back of them and who has benefitted
its a straight transfer from long term holders
the perverse thing is that anyone that has bought in from 3-4 years ago has suffered losses from board self interest - increasing to a maximum loss for those of us that invested 10+ years ago - the board has treated us with utter disdain.
Sustained and large numbers (for DKL) of sales. As ever, my cynical side suspects that prior knowledge for a few insiders is driving the sales and hence fall in sp. Sadly, I am in here for quite a large number. I see no point in selling now and crystalising an 80% loss, but I have pretty much written the lot off. A rather grim and opaque company and a painful lesson learned for me. Next time I'll invest in tulips...
It looks like many are running for the exit.
Imo this investment is right on the precipice and will see a sharp move in share price soon, one of two ways. With such a modest cash position and liquidity DKL really can't afford to run out of cash at this time and it's why the SP is as depressed at is is, somewhat pricing in refinancing on what would be unfavourable terms. On the other if (i) CPO prices remain firm or push on from here and (ii) the cashew venture reaches operational cash flow positive during Q4 as is targeted then we should see the SP start to recover.
Hopefully positive operational news for October tomorrow or Monday.
This share can definitely still turn round - but unfortunately its a long road back.
the market and opportunity is there but there's zero trust or credibility - and as the saying goes - It takes years to build up trust in any relationship and only seconds to destroy it, but forever to repair it.
this is what DKL simply must focus on now - slow but sure delivery in the interest of all shareholders
gradually then investors will come back - however i think we can all fully understand why you'd go nowhere near DKL at moment regardless of how positive any updates are - and that is the problem!
it will be slowly slowly for a good while yet - and the moment DKL falter or show any hint of yet further board self interest it will be rapidly down again.
This is a rock and feather share. Falls like a rock and only rises like a feather in a gentle breeze. Our Micawber board are always waiting for something to turn up and have an excuse for everything. Never mind Rivaldos 9.5p we will be lucky to see 3p as the board continues to thrash the share.
Sorry double ๐ซ post
Good morning Rugs. While it would be a shame to see you go I dint think the BOD need another excuse ( Gaza) in their armoury for non-performance as they are chock full of excuses already. The selling is worrying as there is a long history of serendipity here when selling has always come in advance of bad news. Obviously sheer luck of course ๐ and a gift of infallibility. It is probably (insert your own Lincoln j Moore excuse here... fund manager/EOY selling/ holder needs holiday car divorce/cyclical commodity/AIM
Good morning Rugs. While it would be a shame to see you go I dint think the BOD need another excuse ( Gaza) in their armoury for non-performance as they are chock full of excuses already. The selling is worrying as there is a long history of serendipity here when selling has always come in advance of bad news. Obviously sheer luck of course ๐ and a gift of infallibility. It is probably (insert your own Lincoln j Moore excuse here... fund manager/EOY selling/ holder needs holiday car divorce/cyclical commodity/AIM
I'm with Rugs, and been invested here just as long (I'm 68 btw ). We have seen it all.
For me: No more averaging down, take-up of rights. re-investment of divis (there was a miserly one just once). Period! I will not succumb to any more sweet talking bullocks!
This company is not run for the benefit of investing sharehlders (the owners), but for directors only. Nothing ever changes. I was a committed investor, with a big five figure investment drip fed in over many years, now worth a pittance.
Some folk may not know that this company's shares have been subdivided by a thousand over the years, in addition to chucking new shares around like confetti. The graph of share price decline should be many time steeper than they appear, A gradient of 1 in 3 might be appropriate.
Good luck all. However even the best outcomes don't necessarily mean we will benefit. Maybe our heirs, HMRC or chatritable institutions maybe, Ta ta for now
Db/jk. Thanks your comments. Don't intend average down any more.....I just hope that as the directors have plenty of 'skin' in the company and some good big loyal institutional support, that DKL can be turned around. Hopefully news soon on the latest cpo/cashew output will be positive.
However I do understand that our directors attentions might at the moment be focussed elsewhere especially if they have family involved in Gaza.
Hi rugs, you've always been a loyal passionate supporter of DKL, so that would be a shame to lose you.
DKL has become a punt for me rather than an investment.
I think if given enough time, then things should turn, but we are all literally running out of time!
For anyone with a large paper loss, I still see this as a good buy in opportunity to average down, with the proviso that you don't want/need that cash for a long time and/or ever again.
Unfortunately, the BOD are in 'fingers in ears' mode on any shareholder complaints, so will carry on regardless.
Hi Rugs
yes its a real shame, especially given the genuine opportunity, and promise, to establish a sustainable, credible profitable company generating annuity type returns - its become a real let down - and much of it totally self inflicted by the board.
considering the primary function of any listed corporate board is to maximise shareholder return, by any measure they have been absolutely dreadful - they should all be sacked really - but unfortunately its never how these things work.
Sold over past few weeks. Quite frankly am surprised the price has held up so well. If this sell-off continues I fear we are headed below 2.0 /share. We desperately need some positive news otherwise despite supporting DKL since Feb 2014 I might decide enough is enough and bale out, with a BIG loss.
Same goes to you. Whilst what I said still holds true for management payout (if not shares then much needed cash at this time would be given to directors) I fully understand your frustration and personal gripe over this issue. Nobody likes to see management enriching themselves / benefiting from the share price depreciation (as they accumulate more shares than they would otherwise) that theyโve overseen when you as a shareholder are seeing nothing in return or canโt afford to risk more of your own money. And in this case it seems like they are being rewarded for nothing.
Letโs hope this turns around and all can be (somewhat) forgiven ๐
Fair enough - i understand your logic and agree re share placings for indebted companies.
yes i am frustrated, and much of it because i think the primary dilutions are due to related party transactions i.e. DKL issuing shares to the board, as part of their involvement in pearlside for the purchase of the palm oil and cashews businesses - not due to placements like the one at 5p you refer to (that type of issue i actually have no problem with - the payment to a director in shares is simply ridiculous but ill accept not hugely significant, its a larger indicator though of DKL priorities i.e the board)
i feel the related party transactions were not good value - they were simply a means to transfer value/ownership from retail s/hs to the board.
It seems to me we acquired very little in those transactions other than an idea - that DKL then needed to take loans out to actually complete and make reality (so a double hit of additional loans and share issues)
to be quite honest those transactions reek - thats my view and we have all suffered because of it - certainly long term holders and i don't think any of us would like it to repeat or we all (new holders included) will never make a return.
that's the reason i won't let it drop until i'm sure its not happening again.