Member Info for faz147

Seems less and less likely that the reason for the delay in publishing the results is due to undisclosed positive news, i.e. a further acquisition etc. The lack of regard for shareholders in all three delay notifications is mystifying, with not so much as a suggestion of why the results are delayed. The apparently laissez-faire attitude towards the SP from the BoD does hint that maybe, just maybe, they have something to feel confident about. Perhaps the fall in the SP has been a complication in closing the Accredit acquisition, with recent investors in the placing surely unwilling to accept the shares for the acquisition being issued at market price, some 60% + below the recent placing price. Warren Buffett says be greedy when others are fearful, but also only to buy shares in a company that you would be happy to own entirely if you had the money. I am tempted to put a small amount into DLM on the off-chance that this whole mess is just a case off bad IR management as opposed to something more cynical, but it is basically a punt at this time and I could lose my shirt, so I will wait for the results.

They managed to sneak this RNS through at 6:14pm!! http://www.investegate.co.uk/Article.aspx?id=20120621181439H1405 Further to the announcement of 12 June 2012, the Company intends to publish the audited financial statements by 30 June 2012. Thats the 3rd delay of the results, and the fact that it was disclosed a full 1 hour and 46 minutes after market close, combined with the 16.7% drop before it was disclosed, smacks of insider trading, by the MM's if no-one else!

totally agreed, T.B. and RHPS don't care about their stock-picking record or reputation, only making a profit at the expense of inexperienced and late to the game PI's. You can be sure that when T.B. says he is completing his DD, that means he is already buying, and shortly after he says BUY, he is probably selling for a quick profit. In fact there is probably some money to be made in shorting his tips at the right time, for those inclined to do so. I would say you are more likely to profit that way then through trying to buy his tips early. Picked up some AFC at 20.33 last week, very happy with that price. Only buying shares now which I feel are solid for the long-term but with strong chance of short-term appreciation too. Have you given any further thought to AFC? I know you were considering getting back in there with a few a while ago, seems from looking at the long-term chart that there is support at 20p, and it bounced off that level on Friday, but would be interested to hear your much more qualified view on the charts!! CARE looking like a bit of a bargain too currently, just trying to work out expected newsflow there! Hope your well, ATB

The delays almost certainly indicate either a problem with the audit sign off, or a complication that could affect the publication of the results i.e the Accredit acquisition or a further deal possibly? AH did state in April that they were negotiating several acquisitions. It may be slightly pessimistic to assume it is a negative that has caused the delay, but in the current climate I expect the market to interpret it as negative until it knows better. In fact the drop on Friday may have been the MM's getting wind of the further delay in publishing the accounts. One thing is for sure BLAD, you have picked a risky share here! Nothing wrong with that, if things go according to plan! =)

I have been following DLM (previously IHP) for over two years now, and although not having invested so far, I keep this company near the top of my watchlist because I strongly believe that there will be exponential gains to be had from this share at some point in its development. They are attempting to consolidate a highly fragmented market, which I believe will prove to be a hugely profitable market segment to be operating in with time. Unfortunately for shareholders it seems as if management have made acquisition led growth more of an immediate priority then generating returns for shareholders. Management have made mistakes along the way, in particular the debacle with AHG and the terms for the acquisition of Accredit, but it remains a fact that Accredit is a profitable business anticipated to generate pre-tax profits of between £224k and £300k for the year ended 30 June 2012. Say for arguments sake that the acquisition is paid for by shares in DLM valued at 0.1p, £400k would be 400 million shares, giving a total enlarged share capital of approx 1.24 billion shares. It may be naive to do so, but lets say that without Accredit DLM are currently at approximately breakeven. Therefore 1.24 billion shares in issue at 0.1p = a market cap of approx £1.24 million, so approx 5x estimated pre-tax profit for the year ending 30 June 2012. Doesn't seem unreasonable for a company with no borrowings and a very experienced management team. I suppose the BoD's acquisition strategy will concern some investors who will be concerned about the potential for further dilution, but Andy Hasoon et al seem determined to build a profitable company by selectively consolidating the market, and I have to say my gut tells me that they will achieve just that. I still haven't bought and will wait to see if the acquisition has completed and on what terms before making any further decisions. One to watch for risk-lovers though IMHO!!

The point is - why is the cash balance so much lower than at the last update when they are supposedly profitable?

If you really did buy into this company, then you need to look again and the accounts and balance sheet, as I would of thought the net cash position especially would be one of the things providing you with the most comfort after seeing a big chunk of your investment wiped out. From the trading statement on the 20th April 2012: "Despite the significant revenue shortfall in the final quarter, the Company had cash of £5.3 million at 31 March 2012" http://www.investegate.co.uk/Article.aspx?id=20120420101018P34D3 For the record, I don't think there is such a thing as easy money!

Well congratulations on your buy, it looks like you have paid the cheapest ever price paid by anyone for GNG shares!! How does that make you feel? lol Seriously though, I'm guessing there wasn't much volume available when it ticked down to 7.5-7.75p? I have been watching GNG for years, have been in and out several times with varying success, and have made a tidy profit overall from trading the companies shares. I have been watching as the SP has slipped and slipped and slipped, first below NAV, and now below cash value. What has stopped me buying any has been the question of why. WHY does the market value GNG below the amount of cash it claims to have in the bank WHY does the market not attach any value to the fact that GNG is profitable and debt-free WHY did GNG allow their clients to set the KPI's which determined the level of performance fee's receieved by GNG WHY does the market not find comfort and support in the following paragraph from the last RNS, which was the trading statement on April 20th: "Notwithstanding the reduced profitability the Board remains confident of GEONG's business model and its potential. The Company is still getting new IaaS clients in its core markets and new industries with two strategic partners, and has not lost any IaaS clients during the quarter and its business partner has not moved any business to the Company's competitors. Indeed, the SaaS business gained 2 new SaaS clients during the final quarter of the financial year, a total of 16 SaaS clients during the year and is in current negotiations with another 5 potential new SaaS clients." And WHY has the company not acted to stop the rot in the SP since the update, which has caused the SP to fall by 50% For me there are just too many questions like this, and therefore what seems too good to be true (i.e. GNG's valuation) probably is too good to be true! All IMO though and I hope for yours and others sake that I am wrong.

fair play to you, its a risky one but it could pay you back handsomely! If you dont mind me asking, what price did you get, and what is your target to sell at?

live price is now 7.5-7.75p, down 11.6% on the day. Seems as if the market is pricing in a significant write-down on the accruals, or expects some other negative news to come out of GNG i.e. lower than expected profits, need for cash-flow funding etc etc. Whose to say whether any of the above is realistic to expect? All I know is that I feel for those who have bought all the way down from the highs previously experienced with GNG, and I feel quite comfortable watching from the sidelines for now.

Anyone here care to try and call the bottom for this stock? I am still watching for a possible swing trade but the SP is at an all time low, and the market cap is below cash in bank, so where is the SP going to find support? My mother always told me not to try and catch a falling knife!

Hi mate, hope your well! I held these a few years ago and got out at breakeven because although their market share was growing, it never seemed to be reflected in the SP or the company valuation, and the level of interest from PI's always seemed to be close to non-existant. That was at c.5p though. Now the valuation is much more realistic, and their market share is still growing, so worth watching in case they drop much further IMO. Obviously the concern here is working capital, like with so many companies, but it does seem like if they can get that sorted through their banks, then they will be an attractive investment proposition. The fact that so many cabs still need replacing, combined with the supposed benefits of the Vito over other available models, suggest that there could be the makings of a very profitable company here. Also I see that they have increased their equity stake in One80 Ltd, something that I suggested quite a while ago would be of great benefit to them in the long-term. I will be looking back into ECV over the next few weeks, and catching up on news and developments, with a view to a speculative investment should the price drop much further, or there is signs of financing being finalised.

What I said was: "If these drop below 10p I think they will be worth watching for an entry point which could present 15-20% as a short-term recovery bounce" which is in great contrast to your comment: "Sub 10p the cash value alone of GNG makes this a good recovery play" If you are aware of the issues surrounding GNG, and you have only bought in for a short-term "recovery play", do you except that as a potential longer-term investment there are several factors that contribute to an unusual and for many uncomfortable level of risk associated with the company? If you do then surely you see sense in providing a certain amount of balance to a BB that has for the past 3 years or more consisted almost entirely of posts containing positive predictions for the future, reasons why it is time to buy, and praises for the great things that the management and BoD have achieved. Do not assume that just because a poster is not 100% positive about a company, they are automatically a shorter or a de-ramper looking for a lower entry. As it happens I am still somewhat sitting on the fence with regards to whether or not a short-term speculative buy is a good idea, and my decision will be based more on the sentiment surrounding the company and the level of belief in the forward-looking statements of the company, than it will be on the prevailing SP or the market capitalisation. The SP could drop to 8p on the ask today and I could decide to leave it, or the SP could jump back up to 10p with strong buying and I might decide to have a "punt" on the recovery continuing. If you look briefly at the accounts, and then look at the market cap, I think most would come to the conclusion that it is under-valued. The problem is that PI's have being drawing that conclusion consistently over the last few years, but the value of the company has continually decreased. IMO valuations are not assigned to companies by chance or through luck of the draw, but as a consequence of their accounts, their public and investor relations, and the widespread perception of the people leading the business, amongst many other things. My question to shareholders regarding the market cap was to gauge the level of blame placed by shareholders on the management and BoD for the deterioration of the value of the shares over the last year or more, and whether the general consensus is that they can pull it around or that new people are needed at the top for Geong to realise its full potential. I doubt I will get an answer as I have now been labelled a de-ramper, but if I was a shareholder I would be thinking very hard about these points, and I would welcome anyone who brought these things up for discussion and debate. Happy investing/trading all, and be sure to draw your own conclusions!!!

Between the results and the cancellation of the acquisition in November, the SP bounced back to c.25p, but when the cancellation of the acquisition was announced, the SP declined once again. I believe this was down to two reasons, firstly the board were still making noises about seeking acquisitions in Greater China, when shareholders just wanted them to concentrate on what they already had, and also a number of concerns had been identified by shareholders in the accounts, in particular the trade recievables etc. The SP dropped below 15p for the first time in December last year, when the board announced a change of auditors, which compounded the concers of some who felt the accounts were basically a sham. The results for the half year released in December did little to support the SP, despite all the previous hype from the BoD, and a clarification RNS for the trade recievables was required in early January to stop the drop in the SP, and it worked, for a while. Since then the trading updates and director buys have not been able to prevent the SP slipping to new lows, now sub 10p, because IMO the management and BoD are not trusted by the market, and therefore anything they disclose in RNS's is treated by the market with great caution. All IMO though so please DYOR!!

wizard I'm afraid you have got me wrong, I wasn't looking for explanations because I haven't done any research, I have been following GNG for several years, and have been in and out of the shares a number of times, most recently selling out at 42p in July 2011. I felt at the time that GNG's thirst for a bolt-on acquisition could do them more harm then good in the short-term. The alarm bells started ringing when GNG raised £2.5m by a placing of convertible unsecured loan stock ("CULS") in May, and then when the results were delayed in July by over a month, because the company had commenced discussions about a possible acquisition of Adbeyond, I decided it was time to get out and observe from the sidelines for a while. When GNG announced the details of the acquisition, they also disclosed that they would raise a further US$8 million (c. £5 million) by way of an issuance of a two-year 7.5% convertible secured loan stock. (CLS) I started to worry about the size of the acquisition deal, i.e. up to £9.6 million, and wondered whether GNG had bitten off more than they could chew. I still wanted to buy back in at 30p in early August because of the fundamentals and the cash position etc etc, but I was waiting for a sign that the SP had finished dropping and would start to reverse. I continued to watch throughout August, despite the absence of the results RNS that everyone was waiting for, and then near the end of the month we got an update which told us that the CLS issue and acquisition had been delayed, due to "volatile stock market conditions around the world". We were also informed that the results would be released by the end of September, and were reminded yet again that the net profit after tax would be ahead of market expectations. Shortly after this RNS, the SP dropped below the 29p support level that I thought would not be broken. Part of the problem was that as the results kept getting delayed, the company kept reminding us that the results would be ahead of market expectations, when they eventually released them, but this increased market expectations to the point that when they were finally released in late September, people had come to expect even more. The SP had already fallen to 25p before the results, and it soon fell below 20p, on the day of the release, going as low as 17.5p, despite very positive numbers in the results.

Anyone holding here or buying recently, can you answer one question for me please - why IYO is the market cap currently £3.36million? Thanks

The other concern is that: "The initial consideration will be £400,000 of ordinary shares of 0.05p in DLM, THE PRICE TO BE DETERMINED BY THE MID-MARKET PRICE ON THE DATE OF COMPLETION, OR AS OTHERWISE AGREED BETWEEN THE PARTIES AT THE TIME OF CLOSING." Without a fixed price on DLM at the signing of the Heads of Terms, and significantly without any apparent agreed premium to the prevailing price on the date of completion, the SP is very much at the mercy of the market-makers, and so therefore is the level of dilution shareholders will have to take. I see Acta_topup on advfn feels strongly about this matter and intends to contact the company about it, what are your thoughts about the open terms of the acquisition? Do you think recent investors in the placing at 0.2p will accept Mark Savinson getting a stake at 0.15p or less if the SP fails to rise from its current level? Mark Savinson is supposedly passionate about what is being done at DLM, so it would be nice to see him pay a price which reflects his ambition for the company, not just the lowest possible price that he can squeeze out of DLM.

Hi mate, AH et al certainly delivering on their promise to consolidate the market. Haven't had much time to look into Accredit, but if their level of profitability is sustainable and can grow with the synergies brought about by linking with DLM, then over the next few years DLM will be very grateful for the positive cashflow, and it may help contribute to future acquisitions, rather than being funded purely by shares. On the flip side, after reading the RNS more carefully, there are a few points which should encourage potential investors to exercise caution: "For the year ended 30 June 2011, Accredit reported a profit on ordinary activities before taxation of £224,204 and after dividends paid to the working director shareholders had a retained profit of £93,723." (Therefore Mark Savinson took £130,481 in dividends over the year to 30 June 2011, seems very high for a small company like Accredit, but now it is part of a listed company and not private I would expect this to change.) "Gross assets as at that date were £402,302." (No indication as to the value of their liabilities, and therefore no idea about their net asset value either.) Interestingly: "A further £300,000 of deferred consideration may be paid, also in DLM ordinary shares (calculated by the same method) subject to the acquired business showing a profit before tax of greater than £300,000 for the year ending 30 June 2012." (So Mark Savinson must believe this is a genuine possibility, and you would think AH believes it is unlikely, therefore this years profit likely to fall somewhere between £224k and £300k.)

large dilution coming, but after that has been taken into account, it could be time to buy here. The acquisition of Accredit could turn out to be one of DLM's and AH's shrewdest moves yet, and it appears that DLM are getting it at an attractive price valuation. I will probably wait until the shares have been issued and then look at taking a position. DYOR

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