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A lot of trades for DQE. Have they been tipped anywhere?
Still time mate. I added a few this morning as I contacted the company regarding the receivables and they are making very good progress in addition to the £9.5m they collected from September to May as announced in the results. When you put all of this in to the context of the market cap, I think this is woefully undervalued, notwithstanding the financing deal and proposed de-listing inherent therefrom.
somebody slap me please. I studied this all of Sunday and failed to get in - i even watched their peter pan videos
Once again a very reasoned response, thank you. You are right I am demanding more information than I am entitled to. What I am suggesting is that more confidence can be taken in a share where the motivation/strategy of the major investors is better understood and more transparent. So (I think), OL Master have more in DQE than a simple financial investment or they would not have negotiated the 54% equity conversion or the restructure and delisting from aim, (those details advantage OL Master in some way). (My feeling is that delisting from aim could be a move to private hands rather than Nasdaq.) Similarly I think CCS have more vested in DQE than a straight punt in the market - if so I can think of a number of scenarios whereby a low share price when delisting would be of great advantage. My frustration is that DQE seems only to be valued in the market according to its current financial performance, which recently has not been that great, and that the IP portfolio and future revenue potential are both very heavily discounted. In truth I am looking to exit this investment but I would prefer it to be in the open market rather than at the execution of some dasdardly scheme. The AGM would be a good opportunity to shed some light here, but I can not attend.
With regards the $50m they did state last December : " DQ Entertainment (Mauritius) Limited ("DQE Mauritius"), has issued up to US$50 million of senior secured convertible bonds (the "Bonds") to OL Master Limited, a private credit fund managed by OCP Asia (Hong Kong) Limited (the "Investor")." Surely they couldn't be expected to say more. The RNS disclosing CCS's holding is unfortunately all anyone needs to say. Allenby was giving me that line and saying they don't really have any further info. and anyone can take a stake in our Isle-of-Man based company below 30% before they must make an offer for the whole shebang. So, we wait and see what happens. Notice the AGM is coming up on Sep 28th in the Isle of Man - you going? - lol.
Thank you, your conversation with Allenby is very useful. But why do you think CCS they have no previous (interest rather than shareholding) in DQE? I think the information that CCS are a Hyderabad outfit is a most unlikely coincidence. Either they are totally unconnected or they are not: if 'not', then I would really like to know what that connection is. I am not a fan of this level of mystery behind the scenes. The lack of disclosure of who the $50m Investor in DQE Mauritius is and who CCS are, and why they have taken such a sudden hefty stake, rings more alarm bells than it bolsters confidence at this juncture. The ethical rules of business in India are somewhat different to those we expect in the UK.
Just spoke Buchanan and they say they know nothing but just act as a postbox to put up DQE's RNSs. So, CCS are an outfit from India with no previous in DQE and unknown motives/longevity. Nomad Allenby did point out to me a couple of ii's that had reduced in late April documented in the early May RNS's : Lehman Brothers (Yep Lehman Brothers ! in administration) got rid of 7m shares and International Finance Corporation also reduced by 7.6m. One can assume most, if not all, of these ii shares went straight to CCS. Need a bit of news/contracts to get this going a bit more, otherwise it'll bounce no more than 8p IMO (still 8p would be very nice!)
Had a good chat with Alex at Allenby Capital. He couldn't enlighten me much about Corporate Computer Services (CCS) except to say they are a partnership based in Hyderabad, India. He doesn't think there is a lot 'out there' on them i.e. the Web but did point out to me they are now included in the updated Significant shareholders list on the DQE website. See : http://investors.dqentertainment.com/significant-shareholders Here we see 78% of shares are held by these big holders, but of course they aren't necessarily all long-term holders but probably most are and probably less fickle than your average Private Investor. Anyway, still got Buchanan also on callback to see if they can shed any further light on CCS but that's probably the most of it.
excellent. Will be very interested in what they have to say. Would be nice to get an update on the receivables too.
When I met you last year I didn't think you were loaded - how wrong I was! Anyway, that's as maybe, but I've called both the Nomad and PR team and all four chaps are 'away from their desk' and are set to call me back!
Yep, started buying yesterday, but difficult to get any volume. Added a reasonable amount this morning.
I was thinking of giving you a nudge ! Welcome back, seems we're moving in the right direction.
Thought I would join you back in here. Served me well last time around.
Like your figures and thinking you have got a good understanding of the company's set up - though it's so complicated. I'll try and make some enquiries today re. CCS. One thing, think CCS bought in for around £700k only as I see most of their purchases around the 4p mark, perhaps a bit higher.
Whoever Corporate Computer Services(CCS) are, it is quite a punt given the conditions placed on the company relating to the $50m loan, i.e. it carries some risk, unless they are either affiliated with the company or the Investor who made the loan. If DQE own Mauritius 100% and Mauritius own DQE India 75% and India own DQE Ireland 100%, what is the angle of the Investor who lent $50m and requires Mauritius to swallow its parent company and list on the NASDaq and what is the angle on CCS paying (say) £1.2m for 29% shareholding when, should the company default, all the assets effectively become the property of the Investor. So I am very confused unles someone has an inside line. But, if all works out well and the company honours the loan and the rearrangement of the company, the Investor can convert into 54% ownership having paid $50m, this implies the remaining 46% is worth at least the same, turning CCS' 29% at a cost of £1.2m into 14% of the new company structure worth approx £9m. Buy out target then is 50p and we start to see the true value of the portfolio rather than the current market cap.
There are I suppose considerations for ISA holders re. moving to Nasdaq. No-one is sure when/ how this might happen yet so no use worrying about for the near future. My thought is that a significant offer will be made for our shares at some point before moving on to the Nasdaq. I think I should try to find out about Corporate Computer Services - I'll first try and get their address to find out which one, of quite a few, they are. 29.7% just below 30% is obviously a significant percentage, presumably just below where they would have to make an Offer. Notice the sp ticked up a bit at the end today - perhaps it'll bounce a bit - well oversold.
Pablo2. Holdings in a nominee account ISA are not so simple when the provider does not trade on non uk platforms. Shares are scare to buy, if you look at the major shareholders, then there are only 12m shares outside of those holdings and at these prices I guess a chunk of those 12m will have been consigned to the bottom drawer. Have you found out any more about the mystery 'Corporate Computer Services' - I cannot help but be suspicious that DQE is being positioned for a very cheap buy out. Why has Chakravarti only got 81,000 shares? He is a 'player' which suggests to me his interests are hidden. The company structure is horrribly complicated, and I am suspicious of that too. It is a shame, because I think the portfolio of copyright and IP has both value and potential. But with a market cap at 2.5m, just what does a DQE shareholder own - not very much of anything as far as I can see, insomuchas that market cap does not reflect any one part of the business let alone it's aggregate value. If / when it moves to Nasdaq, I think you are right the price will rebound but I think the shareholding will by then be in very select hands.
Thoughts : Think one of the big put-offs from this share (besides the ongoing attempts to reduce 'receivables' owing, which, from all accounts, is improving) is the threat to leave Aim and go to Nasdaq. This was stated on RNS Dec 9th 2014 : " Liquidity event (trade sale or IPO of DQE Mauritius) to take place within 3 years · DQE to be cancelled from trading on AIM and merged with DQE Mauritius as soon as possible prior to or as part of a liquidity event (trade sale or IPO of DQE Mauritius)" To me this isn't a problem and could well result in a big jump in the value of the company before and after switch to Nasdaq. People worry that they will not be able to trade and will therefore lose all their investment. This is nonsense but obviously has led to doubters. It is getting on to 10 months from that announcement and we only have 3 years and if I remember correctly this liquidity event must take place within this period or the $50m investment must be repaid (not sure about the exact terms as they are complicated (see the RNS)). But in the next few months building up to November's half-year results we should definitely see some contracts announced. Anyway, I've taken the massive plunge to top up with 6,488 taking my average down to about 10p. Full steam ahead and I might break even - after about 4 years.
No didn't get any of MAC just chased you for your attention. Who put you on to them as I see they've done a big move the last month? Perhaps this will go into downward drift again unless there's some news. Perhaps Corporate Computer Services will put in an offer I can't refuse - hope so. Are you going to Banbury again this year, on the 30th. I might.
Yep, still on watch list having sold at around 9p. Luckily caught the peak. Did you get any MAC?
No can't find which 'Corporate Computer Services' they are - seem to be a few looking on google. But with an increase from zero to 29.7% in a month, they have got to be serious. S'pose they were the ones that took us higher in May. I'm still going to hold 'cause as you know I'm still quite a bit under here. Something may be moving though. Nothing from Cannes which ended on May 24th. Results were pretty good I thought and normally they set us tumbling so market seems to think we're improving.
Interesting. Know anything about them?
Now that looks interesting : "Corporate Computer Services holds 16,733,662 Ordinary Shares, which represents 29.7% of the voting rights in the issued ordinary share capital of the Company." So, within a month from mid-April, they've bought up 29.7% of the company from a zero starting position. Takeover??
Only 5 trades today and all of limited size, so not much response to the results. So the drop of 10% is fairly meaningless IMO. Hopefully when results fully digested and perhaps some news from Cannes, this might continue it's journey back up. Still holding.
...but no corporate comment, which I find amazing!