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I don't think there is any rival bid knocking around. We are supposed to hear something on Monday and I'm favouring a further extension. I think the due diligence is taking quite a bit of time especially with the Tufnells implications but who knows. Interesting that the two most recent letters of intent from lloyd and Gatemore make no mention of acceptance at 45p which they had in the first letter of intent.
I won't be seeing this through to the conclusion but it's certainly been an interesting ride with DX.
ADVFN chat board, mention counter bid from another interested party.
No idea if it’s from a reliable source, anyone heard anything?
A significant move this morning. Something is about to change?
Price looks good on HL just now 🧐
It's in the context of the share price and valuation. Buyers and sellers determine everthing. In relation to the SP, market makers have to make a market for the shares and they can't do that if there are not buyers and sellers. As regards the company valuation the buyer offers the price...and the sellers.. ie shareholders decide if they will accept or not.
Perhaps my wording was a bit confusing.
@Ports how do those buyers and sellers determine what they are prepared to pay or accept? Asking for friend..
Thanks Ports, as you say the level of transparency regarding the decision by SCS is refreshing!
I'd have hoped DX were slightly better position to be listed to gain value, but it has been a slog, all be it a great story in isolation from single digit shares to the value now. Obviously everyone can see the previous prices from before the turnaround but the landscape has changed and some of the issues haven't helped!
Hopefully we get some news soon :)
Everton... it's a fair point but there has never been a direct correlation between profit/business performace/market share or whatever and share price/valuation. There are so many valuation metrics you could come to any figure. There are only four things that matter in my view ... buyers/sellers and what someone is prepared to pay and what someone is prepared to accept. Does anything else really matter ?
Something interesting came out of SCS yesterday. An offer has been made for the company which I believe is a low offer, certainly considering their cash position etc. But the directors very kindly outlined their reasons for recommending accepting the offer. Quoted Below;
"Nevertheless, based on ScS's history since the IPO, the ScS Board is not confident that this anticipated progress will necessarily be recognised in appropriate share price appreciation. In the ScS Board's view, this is due to a number of factors including; the lumpiness and sometimes unpredictability of big ticket retail which is unattractive to some public market investors; the IPO positioning of ScS as an income stock when small cap companies are typically growth focused companies and noting the current significantly higher interest rate environment; the poor track record of some comparable retailers; and the failure of investors to properly value ScS's cash resources.
The ScS Directors believe that the ScS Shares generally have low levels of liquidity which makes it difficult for ScS Shareholders with larger holdings to realise their investment and acts as a barrier to certain investors who require a significant holding to become a ScS Shareholder."
Personally I think there is similarities to DX in the following... in various minds
"no confidence anticipated progress will be reflected in share price appreciation"
"Unattractiveness to some public market investors"
"failure to properly value the business and resources"etc.etc
"low levels of liquidty"
It's good that the SCS board have been transparent in their reasoning , hopefully we'll get that from DX rather than we accept and recommend.
What I do not understand, is what the upgraded estimates of profitability must be, after Tuffnells. If DX share of IDW was 15% before the collapse of Tuffnells and is 25% now, and IDW is the biggest constituent part of the freight business, then that is a very significant increase in turnover, and presumably a pretty significant increase in profits. if the company was significantly undervalued before, then you would imagine it must be very significantly undervalued now, arguably, even at 48.5p
It seems unlikely there that is anyone else in for DX. I think we would have heard by now and I have factored that in to my thinking.Just about two weeks until HIG have to declare unless any further extension. It's worth considering that if HIG signal their intention to offer they have 28 days or so I think to submit the offer proposal so this is whole thing is probably going to drag on until at least February if HIG proceed with an offer.
I have been reducing my exposure recently as I'm alittle less convinced HIG will make an offer or an offer of the level mooted despite the good figures and 40p was always my exit point as a turnaround so its just a matter of reducing risk and following my strategy that I shouldn't ignore just because there is a possible offer floating around.
Just looking at the board, 43.17 placed as SELL, that same price was my quote for a buy.
I reckon the algorithm is off a little today.
Sand Grove with a big purchase @ 43p.. sounds positive
Cracking on with the business while HIG ponder, should make for interesting negotiations on the final price.
GLA
Good results 1p div.
OK. I don't really grasp your post.I don't really understand where greed comes into it and how me supposedly "grabbing all I can get.... explains alot" What exactly does it explain.... you seem determined not to answer. Personally I don't think that commenting on the actions or strategy of other shareholders whoever they maybe actually gets us anywhere. It's just conjecture , it' s not necessary, irrelavant and doesn't really contribute to this discussion board for the benefit of those who read it.
You right Ports, I don't know about you - but why would I want to?... People invests for all sorts of reasons, it's their business and good luck to them all. My target sp it's my only concern. In my own view no investor deserves less than that and we've been dragged into a possible under-offer. If they're happy with lower than that they're 'financial' mugs and out to grab whatever they can or just happy to get whatever is given to them for whatever their reasons might be. These terms aren't in anyway personal or individual- they are 'financial' expressions only. I call myself a mug anytime I am forced to sell below my tp whether in gain or loss
I fully agree Ports. Everyone has every right to make their own choice as to what is right for them. I think a price of 48.5p is personally on the low side for DX but my holding now amounts to over 6 figures and therefore I would argue my decision to accept this offer is actually the opposite of greed. I could get greedy but the amount of profit in monetary terms for me personally is now one I am happy with. Lloyd senior has far more invested than all of us and at his age perhaps he wants to enjoy the fruits of his labour and who can blame him. Decisions on whether to sell or not will depend on how much skin you have in the game and your personal circumstances and no one should judge another’s decision on this.
With all due respect email you know nothing about me and personal comments about me grabbing what I can get are completely irrelevant. If you check when I started posting about DX you will know roughly what I paid. A return at 45p or 48.5p is perfectly acceptable to me. If it’s not enough for you then fine. No problem. You really should respect other peoples positions. I do yours at 68p. You’ll still haven’t explained where greed comes into it?
Well, Ports, my target is 68, yours is grab whatever you can get from this possible offer. That's explains a lot
I agree ports, they’ve more than done enough to deserve a decent exit.
I understand the frustration on prices being quoted, but I’m not sure that would make them any less or more ‘greedy’
I’m not sure where greed comes into it. I presume you are referring to Gatemore and Lloyd email. Both have been instrumental in the success of the turnaround not withstanding various mistakes by some. They’ve indicated a level where they are happy to accept a possible offer for their holding that they consider an acceptable return for them. Isn’t that what we all do.?. Where’s the greed ?
Yes, sure... I was not particularly trying to reply to you, just pointing out some greedy DX major shareholders can't wait to sell
It was only the RNS trashing KINO released by the company that wanted to buy them out that I was referring to, I wasn't saying the 2 takeovers are equivalent.
Back =buck, just in case it isn't clear