Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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I'm afraid I just don't see the wipeout risk, never mind the fact that you think they are huge :>)
we have had the discussion before...but the mcap here is not the measure of value cos of the huge debts ...agree there is plenty of upside but the wipe out risks are huge ...I may be back at option pricing c2p...if I have the guts lol
It's no secret that I am invested here and as a result it's fair to say that I want this company to do well so that my profit is maximised. However, I must say that the only issue I have here is the receivables. I agree they are not good to the outside World. I also do not like the fact that they have hidden behind the fx rate difference on their Q1 news release. But there is so much potential here that the current m cap is just too cheap. £4m? Worth far more.
nearly 20%...
The Company is progressing well in its discussions for financing the development and production of its properties and it is hopeful of concluding these soon, but working capital remains under pressure in the meantime as collections of receivables continue to be slow.
"we would expect to remain on track to meet management's profit expectations for the year to 31 March 2015." Maybe that statement is a little optimistic, but it's there. Therefore, if true, today's massive further drop overdone.
sorry, should read cf to nett income Q 30 June 2013
Good find ianous, and bad news. In a nutshell@ Nett income Q to 30 June 2014 206 Cf to nett income Q 30 June 2014 304 Loss for Q 70 Profit for Q 115 Int & Finance Exp 75 50 Loss after I & F 142 Profit after I F 67 Beggars belief. We will get the usual from BOD that business is much better in 3rd and 4th Qs. Can anyone see anything good here. It's only about 3% of my stock holdings, but I am averse to being taken for a ride.
I've scanned the posts here and can't see any reference to the India quarterly's which rivaldo on ADVFN posted yesterday. I guess these were the reason for the drop. http://www.moneycontrol.com/stocks/reports/dq-entertain-financial-resultsresults-press-release-limited-review-for-june-30-2014-845398.html Not invested here but have been in he past.
All, for a knowledgeable discussion of the business. IMO there will be a bounce back today - just a hunch and the yesterday's movement on 'no news' simply very little liquidity in the share. The mm's get 300,000 Sold in a few minutes after virtually nothing in a week, they panic. Dropped the price to put a stop to something they weren't expecting and didn't know why it was happening. Still in trouble with these receivables, but the last Results indicated small improvement on this front and the urgent need to sort things.
In view of yr post re: business and opportunities', I would be interested in yr opinion of FLOWgroup. I'm heavy into this. If u do not reply, no offence was given, or would be taken, Regards testpack3
Evening! I'm a bloke lol. To clarify i meant the chances of this company delisting due to credit control issues was approximately zero. With regard to my auditor post i was simply trying to share with the bb the fact that stringent testing will have been done on recoverability and existence of these balances. I have no access to the working papers of course but I think it is fair to say given the risk involved in signing off audit reports that we should piggy back on auditor opinion here. Liked your posts riding waves. Very informative and a good read.
Thnks for your insight. I 1st bought in last Summer at 12p. Due diligence was done, and I saw a good business model. Had I known dq has little idea of sales ledger control, I would not have invested. I would not even consider lowering my average by buying now. If the sp drop is a .mistake', and dq manage to bring the sales ledger under control, the sp will not 'fly' to 30p in one trading session. There will be time to enjoy profit by buying in when we know what on earth is happening. Lesson learnt for me = be wary of foreign cos coming to AIM, more aggressive risk assessment in future. GL
Hi Testpack3.......i have to say i am not invested but have followed this business for a while... I am not a de ramper but have an interest in understanding businesses and potential investments... I really like the products and the line, but have struggled to press the buy button because of my doubts. In all the time i have posted here i have to say the quality of the posters here has always been very good... If only for that reason i would like to see this to turnaround into something special.... GL
Hi, excellent post, thanks, and the points you raise have a large impact on net asset value. I assume the posters on here are shareholders, and no de-rampers. We have been conjecturing on why the big fall today, and are in general agreement that it was not a £15K sale of stock, although the sale and downward movement were the same time scale. MM's do not send the ask down 23% on a whim. Although after saying that, I am reminded of the saying ' there's more irrationality in the market than anyone has money'. A previous poster, disco,,,, posted that the chance of a delisting over credit control issues is 0%. The poster stated (s)he in a auditor for 10 years. Did not leave themselves much room for error there!! Delisting is not a one way street, and DQ may have no control over the issue. There is a 100% certainty in the Universe. If something can happen, it will happen, it's only a matter of time. GL
Hi .......Receivables is one obvious issue that the business has to overcome... But there is another, remembering that this business is largely built on distribution and copy right ownership....if i am right and i maybe wrong..... This is purchased from associated and other businesses which DQE has a % ownership in some... The distribution and copyright is paid for up front and capitalised as Intangibles therefore the cost is not shown as an operating expense.....So the main gainers here are the Indian associates and connections and if i am not mistaken DQE has to expense some of this Intangibles out of earnings made and attributed to the related intangible but this has been small amounts.... The problem i can see is that the operating costs plus capitalised costs are very high and wipe any meaningful profit. Therefor you get a situation where the intangibles are overstated.... I have often stated that management are an issue for me here, but i do struggle with the level of intangible and a falling 2.5 year order book.....IMO it is out of kilter and a future issue along with the level of receivables and cash generation... So the real beneficiaries here are the Indian production companies and associates....since they are selling the distribution and copyrights to DQE.... So you may well be right in that one option would be to delist and restructure.... It is only my opinion but they are going to need another capital injection and the current SP would not support one without a very large dilution.... I maybe completely wrong and i do hope so.....as you will obviously know this business better than i do... GL
Couldn't agree more - nothing has happened and one PI with 300,000 shares bailed (200,000 + 2 X 50,000). The financial situation remains dire here as reflected by the sp which IMO will probably bounce back a little tomorrow. However, the situation is not compounded by a poor business product. We are still making some great films and selling plenty of TV rights.
15k worth of shares is nothing. Just some pi like me and you had enough. Nothing about the company has changed. What makes everyone think this is an ii ?
This is copied from FYR end March 2013 The total outstanding Trade Receivables of the Company at 31 March 2014 was INR 2,599m, out of which INR 1,322m was outstanding for more than 180 days. The Company has confirmations from its customers of their dues to the Company. The monies are being received on a regular basis from most of the customers, though in small values, thus confirming their commitment to pay and honour their liabilities. At an xchange rate of 100, this equates to £26M, with £14M > 180 days. cf T/o £24M I do not believe the sale of 200,000 share ( £15K) would trigger a 23% fall in sp, although the timing suggests this.. Did the seller have wind of of an impending insolvency by one or more of DQ;s debtors.?? Maybe the BOD will issue a rns tomorrow. Hold on to your hats. All IMHO of course
According to my brokers figures, just shy of 50% of the stock is owned by 3 ii's. If one or more of these has jumped ship this could cause a significant drop. It would have to be something major for an ii to sell out, even though they would still be making a profit on the initial investment. I sold 50% at 13p, and am 40% down on remainder. I did 'top up' at 16p prior to results, hoping they would be excellent, and they were, except the fact nobody was paying them for services rendered. It's conjecture, and let's hope we are all wrong, and DQ will pull a rabbit out of the hat. All IMHO of course, and GL
That 200K sell reported late appears to have been the trigger, but why?! Wish I had funds to top up. Not advice, but for me this is so cheap given the reported figures.
Definitely very strange indeed. I wonder what it could be though. The only thing I can think of is finance, i.e. a loan, so interest payments hitting shareholders funds.
cannot have been caused by a sell off a few 1000 GBP with no rns. We may not get notice, obviously, of trades with delayed announcement. The receivables issue is 'old hat' and is in the public domain since results were published. Methinks something develish is afoot. IMHO of course.
Agreed - I just thought I'd share mine as it was from a different angle. Ultimately, we all know as much as each other about the finances and it's nice to have sensible debate. Wish all holders the best of luck.
Indeed. I think though that if we are worried, then how concerned must the auditors have been about the situation before signing a clean audit report. The auditors ultimately have significantly more information that lowly us and they will not have signed off (with unlimited liability by the way) on the accounts if they hadn't tested it a lot.