Member Info for Pianista

In a few months' time, this will just be an irrelevant blip...

I agree. And a takeover would be attractive to existing shareholders, because the terms of the loan notes are far too generous.

Holding above 10p. Puts me in the black at last!

I would expect the shares to move up steadily through the teens in the next few months. The results announcement shouldn't make much difference now - it's becoming almost irrelevant ancient history. However, won't the prospect of conversion of the loans at 10pps be a bit of a drag on the share price? For example, if the loan notes were to be converted when the share price has recovered to say 20pps, the issue of so many shares at 10p would knock the share price back to around 15p according to my back-of-fag-packet calculation. However, in view of the generous interest rate and the fixed price of 10p, it will presumably not be in the interests of loan note holders to convert until near the end of the 36 month term.

Although it shores things up, full recovery of the company and hence the SP will take time. So I think ironically the RNS makes DX more exposed to a takeover, because an offer of as little as 20pps now, as opposed to having to wait at least a year or two for the shares to return to that level, will look relatively attractive to existing shareholders.

I was expecting them today - last year they were out on 5th October. Looks like next week now.

10.75p

Poleaxe - the SP recovery today is as much about the removal of overdone negative sentiment surrounding this share as any specific benefit from the new contract.

I can't see what people are looking for in the long-awaited results. The company have said "in line with previous guidance" I believe, except without the benefit now of the £1.8m lease incentive, and with abortive merger costs written off. Not pretty, and I doubt it will give the share price the lift we are all looking for. No, it's not the numbers that will do that, it will be some exciting news about the future, or a takeover, that will finally put a rocket under the share price. It can only be that that explains the strong institutional buying this week.

I'm sure the sell off is overdone. The announcement makes no difference to the prospects for the company - it may even precipitate a bid. I'm slightly puzzled because they say there is an adverse impact on underlying profits, but surely the lease incentive would have been an exceptional item, and not included in underlying profits or headline EPS?

We've been waiting for it seems like forever for any real news from DX on its performance/prospects, or from Gatemore on its intentions. Hence the share price drift on thin trade. All you can do at this point, provided you believe in the business with its new management, is average down as Gatemore have done. I'm sure Gatemore would love to make a bid, but with around 70% of the shares owned by institutions, they won't get away with a lowball offer. That would also start a bidding war...to the relief of long-suffering PIs.

Despite ridiculous spread, bought 50k at 9p this am. This could take off at any moment.....

Thanks ojls, very interesting, as is the situation with Gatemore getting closer and closer to 30%.....

Gatemore's purchases of around 5m shares on presumably Monday should have stood out like a sore thumb. Does anyone know what that kind of volume of purchases was priced at? Given the excessive turn on Monday, I would think around 8p. But these purchases didn't affect the share price significantly. Perhaps they were, in part at least, off-market purchases.

Massive turnover of shares so far today, even tho not available to trade with all brokers. Maybe Gatemore are buying prior to making an offer for the whole company. We'lll soon find out.

Can't trade through Barclays yet.

At 10p a share, the company is currently worth only £20m compared to £200m when floated. Since Gatemore have so much faith in their vision for the company, it wouldn't surprise me if they'd be prepared to offer 30p a share. They already own 21%, so they would only need to find less than £50m. A majority of PIs would be happy with such an offer, but I'm not sure about the other institutional investors. However, I'm sure something could be worked out.

Gatemore certainly SHOULD have a great plan for DX, because it has scuppered a merger which, even under the original terms, would have propelled the share price back into the 20s or higher, bearing in mind for example the synergistic savings of £12m pa - which both sides will now lose out on. Indeed, I believe the existence of a viable alternative plan for DX as a standalone company was a major factor in allowing DX to walk away from a potentially great deal for both parties. So I would expect the DX shares to rise significantly when the suspension is lifted (I wonder how much notice of this they'll give us). I can only assume this hasn't happened yet because further significant announcements are in the offing. In the meantime all we can do is wait.....and wait.....and wait......

You would normally expect management to be champing at the bit to top up at these distressed share price levels. However, if they were to do so, I think they (or their investment vehicle) would be crossing the 30% threshold beyond which they would need to make a bid for the company. Interesting times.....