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Sold a lot of my portfolio last week and finished today. I would probably have sold DX if I could.
For me the inflationary economic headwinds are to great and here for while and I think coupled with the European security uncertainty I think we are in for a torrid time, so I'd rather have the cash.
This is my best performing share today, lol...
Or maybe bribery to win a contract of something
I thought a similar thing... I think that it could be theft / fraud by an employee.
Thanks for those replies which are helpful. I was fully aware of Gatemore's role in the appointment of the directors in 2017 which is one of the reasons why I am concerned at the obvious deterioration in the relationship which has culminated in the present situation. I didn't really like Gatemore complaining about the share price. Of course it is disappointing that it has done nothing last year but it is hardly the directors fault that it did nothing in the year before the governance issue. They have expanded the business , achieved profitability and by Gatemore's own admission done a good job. So Gatemore praise the directors for what they have done and what the projections are and then indicate they want to review the plans that justify/ support those forward projections and effectively say we don't trust you. It doesn't make any sense at all to me. Ultimately, though I'm not comfortable with a interventionist influence on the board so I'll probably sell when I can unless there is some news that changes my mind. Good Luck to all.
Just a thought on the corporate governance issue that we have not been given details of, could it be something out of the company's hands that they are not allowed to discuss. Perhaps a police investigation for example. They would be unable to force the police to complete their investigation quicker, just because their accounts are due. And maybe there are not allowed to discuss it because it might affect the outcome of the investigation. Just a thought I had, again it's speculation and there's nothing to support this theory but it could be something like this preventing information being released.
Regarding Gatemore: are you aware that the current board was put in place by Gatemore following their investment in 2017?
Gatemore are very concerned with running profitable businesses and are aligned with shareholders receiving maximum benefit. If Gatemore are concerned with how the board is currently being run, then it is because it most likely does not align with Gatemore's view on how shareholders can best benefit.
If you are pleased with DX's performance since 2017, then have some trust in Gatemore to continue pushing in that direction.
Well Sister... you certainly seem to have a bee in your bonnet about Gatemore. But I do see exactly where you are coming from and your points are valid.I think we just have to wait until Gatemore show their hand with the review.
They have already showed their hand to some degree with their letter of threats and demands for a seat on the board which really is not a good look at all. But is indicative of how dire things had become.They also stipulated they wanted to see changes in the board. I think after the review we will see some board changes I just hope they are not people I consider vital to the business.
It's just a waiting game but it's not a nice game to be involved in.
Sorry to keep banging on about Gatemore. Does anyone else have any view on their strategy as I can't make my mind up whether to sell when the share suspension ends.
The main thing that concerns me I that Gatemore are a interventionist fund and are not shy in writing to companies when things are not going their way. They'e done it a few times. I wouldn't want Gatemore to be the puppet master of DX but that seems to be the way it is going.
According to Gatemore letter to DX:
As a director of the Company, Mr. Meidar will pursue the following priorities on appointment to the board will be:
1. promote significantly improved and proper governance standards;
2. push for the resolution of any material issues identified by the internal investigation, the internal inquiry, or Grant Thornton, in each case with the necessary degree of urgency;
3. meaningfully improve DX's investor communications and transparency; and
4. seek ways to achieve full value for all shareholders, including through exploring strategic alternatives.
Well he has been post now 5 weeks and has done nothing to improve point 3 as they all well know that explaining the corporate governance issues would along way to allay shareholder worries.
The time this is taking also worries me ( months) which makes me fearful it is more serious that they are letting on.
I can understand how some think having them on the board is a good thing because they think Gatemore interests are aligned with ours. I'd welcome any informed thoughts about Gatemore's strategy and its implication going forward because it strikes me that if Gatemore's aims and objectives are not aligned with the Directors they can cause trouble at any point down the line.
sisteract.... Yes, do feel free to speculate and opinionate, great if you and others find them very helpful... good for you... In no way I meant to stop you or anyone from doing that... But at this stage, personally, I would ask your very important questions once we are out of the suspension when some facts may (or may not) give us something more tangible to hang onto. Yet again I stress this is my personal view, and it's not meant to limit anybody's freedom of expression
"also speculations about gatemore are not helpful..."
e-mail. I thought share discussions were about giving opinions, speculating and commenting on what was going on in the business. No one knows what is going to happen, but everyone is entitled to give comments and I would find all speculations/comments helpful whether they be similar in nature or totally different.
I would suggest you give a great deal of thought to what Gatemore are doing: ie
Why did they feel the need to effectively humiliate the directors in public. ?
Why did they demand a seat on the board. ?
Why did they instigate a review of strategy in capital allocation and expansion.?
Why have they been complicit in still keeping a lid on the corporate governance issue.?
What comes out of Meidars Gatemore review will dictate what DX are doing moving forward and it will undoubtedly affect the performance of your investment.
With all due respect I'd have thought comment and speculation about Gatemores actions will be more than helpful.
While disappointing the suspension there have been no sinister or devious hints... It might well turn out this suspension is the best thing to happen to get whatever was not working well to work better... also speculations about gatemore are not helpful... Unless some catastrophe is announced - and I do not believe it will - I will certainly keep holding, hopefully until before Christmas when I will reassess the whole situation
I think we are pretty much on the same page Sister.
It has crossed my mind that the concerns expressed by Gatemore regarding corporate governance were a bit of a smokescreen to the real issue which I think seems to be a concern on DX's direction of travel. Hence the instant review of the expansion policy as soon as mediar is appointed to the board. Going public with their threat to call a shareholders meeting for me was a nuclear option when it could have been done in private shows a real disconnect between the directors and its major shareholder.
Meidar is now a non exec director leading a review into the expansion and capital allocation strategy.Non Execs are supposed to provide independent and objective judgement on strategy. I don't know how that can be achieved if he leads an organisation with a 20% shareholding.
My concern is mainly medium to long term. The waters are muddy and strategy uncertain but I am prepared to wait a bit for some clarity.
So I fully understand your concerns Sister on Gatemore and I have them as well. Good luck whatever you do.
If we are to see trading again early Feb I think we should see some communication this week that the AR will be published. I hope we see a spike on that and if we get a trading update. If we do I think I will sell. The pulling of the AR on the day it was to be published still rankles with me. These things take weeks to be prepared so it must have been agreed and finished and then it's pulled on the day. Im also not comfortable with Gatemore being on the board. As soon as Dx are profitable Gatemore want to stick their oar in and throw their weight around so as another poster said it won't be the same company I invested in.I worry we may be subject of a bit of stitch up at some point with Gatemore involved. If faith is lost in the directors and the plan moving forward in uncertain then there is only one answer really. For me anyway.
Interesting that at the AGM there was a virtually unanimous vote to reappoint the auditors. Although 28% voted against the auditor renumeration resolution. I'm not convinced the auditors are completely at fault. After all they can only work with what they are given or find.
Even with Liad Meidar on board, the company have given no further details of the underlying problem - which seems to indicate that the company did, despite his harsh criticism of the company's RNSs, tell us all they reasonably could about the governance issue at the outset after all.
All the company have said since then is that they are making “steady” progress on the issue, which I took to mean its resolution won’t be just a few days away, but it that WILL happen, my guess would be within a month or so.
If the delay was, as seems likely, largely the fault of the auditors, it obviously wouldn’t be politic to say this in public, so management must just quietly soak up what amounts to unfair criticism.
I’m not too bothered about the suspension: I have no urgency to buy or sell, though some PIs may well need to do so for personal reasons.
It’ll all be quickly forgotten once we are back on AIM - and we get a decent trading update, which is what matters most in the short term.
Slightly belated happy new year all. Despite knowing of the share suspension the wait for any sort of update continues to remain stressful.
On many an occasion I have expressed faith in DX but feel rather let down by management.
Certainly does not instil confidence for novices like myself.
Not that much can be done at the moment I am simply biding time and hoping that the suspension is lifted early in February so I am at least able to make an informed choice.
We all are in a frustrating position and have expressed emotions from disappointment to anger to frustration and management being inept in some respects.
Apologies, am clearly venting and hopeful of reading another post expressing confidence in a SP rise.
Yes, hopefully we'll get a trading update early February and I think we will. It's interesting that with the clearance of vacancies deadline 30/12/21 the operations vacancies dropped to 177 on 2 January and within two weeks we are back up to 277. Notwithstanding staff churn I still think they are struggling for staff.
Had an interesting chat with our UPS collection driver recently who said that business for him was unprecedented, things from before Christmas have been held back and returns from online shopping were in his words "unbelievable". He was surprised as UPS are relatively expensive in the grand scheme of thinks although slightly cheaper than DX and there was plenty of staff off with Covid. I think there is a read across for DX in that there is still plenty of work out there but the logistical issues are still pretty prevalent.
I am pretty confident that we will see a bounce upwards when the suspension is lifted but I think that will be very short lived until mediar's review is completed. Time will Tell
It was a welcome RNS last week notifying the new depot openings. Happy they are in the more profitable freight division. I wonder if it will all come together in early Feb, Trading update last year on the 1 st Feb shares trading again etc, etc.
Can't really get my head round the delays. This was from financial year ending 3 July /21, it was an issue Gatemore knew about before we did and we have known of problems for nearly three months now and its still not sorted out. Completely inept. !!
Fair comment. The note in the RNS that things are progressively "steadily" hardly inspires confidence as its obviously been bubbling along under the surface for well over 6 months.
A share suspension for maybe a month or so is really just an inconvenience in a 2/3 or 5 year plan.
I'm more concerned about Meidars review as the result will determine what sort of business DX will be moving forward and the company we are investing in.
And compare their suspension RNS to Go Ahead's which was more detailed:
"The Company intends to request a restoration of the listing of its Ordinary Shares and its Bond on publication of the FY21 Results. The Group continues to work closely with Deloitte to ensure that the FY21 Results are published as soon as possible. This is expected to be before the end of January 2022."
DX no timeline just some vague notion that at some point it will be unsuspended.
Letting the share get to the point of suspension is nothing short of extremely inept management, end of story and the CEO and board are to blame. This doesn't happen over night, it has taken 6mths. Maybe Lloyd is good at the ins and outs of logistics but having Gatemore on the board is a massive plus. Some very smart people with strategic experience and understand what propels a share price..which is certainly what I want.
Agree with you on this one, a difference of opinions maybe but when you hold 10% you still have the same interests at heart.
Short Term I think they will find away forward. After all Lloyd owns 10% of the company and it is in his interests although he is already pretty wealthy. Long Term I'm not so sure.
Understandable Sister. Agreed you can't have both. 20-25M investment and expansion strategy has to come from somewhere. Whether it be existing financial resources, profitability or even a fund raise. The DX directors have done a wonderful job in turning around the business and I personally think it's bit rich of Gatemore to say well done on one hand for getting us to this point but we are not happy with your plans moving forward and we want to temper that with our own interests, so we demand a seat on the board. The share price has done pretty well since the current directors got involved in 2017.
If I was Lloyd I would have say that I would be pretty cheesed off not withstanding the mistakes made over the corporate governance issue last year. I would worry if Lloyd feels he is losing control of the strategy so I can understand the nervousness . I'll watching the mood music very carefully coming out of DX in the next month or so.
Happy New Year Everyone.