Member Info for portswigger

I dont think there is anything strange np. Shares are sold for all sorts of reasons at any time. Two institutional shareholders have sold for their own reasons but there isn’t anything strange about it i would have thought. These processes take time and it’s likely it could be feb or even march before any shareholders see any final settlement from the offer. Anyone who sells will see it in their own interests to sell now rather than wait.

Np. The dividend payment date already been announced.Its never done again on the day it is paid. The next news will be production of the document re offer. There really isnt anything else to see as far as i can tell.

I'm not sure I deserve any credit lunchalot but thanks anyway.

What interested me in the RNS was that this HIG interest had been going on since June. DX deemed it in their interest to keep this from shareholders (certainly private investors) until a acceptable price was proposed or it may have been the requirement from HIG which I think it may have been. It's a lesson for us all that you never really know what is going on behind the scenes. This time it worked out well.

I was also interested in the reasons for acceptance. One reason given was that of liquidity like SCS and let's face it there are profitatble dividend paying companies that are not attractive to potential shareholders of whatever type. Simply put good figures can be virtually irrelavant to potential shareholder value if they don't create shareholder demand.

DX were also mindful of their reliance on the UK market amid the very uncertain macro-economic background which certainly underpins my investment strategy at the moment

I know we all have a different view of the final offer price. For me as a turnaround play it has far exceeded my expecations so

this investment ranks as a pretty good one for me.I'll be selling up the next few days as I've got other plans for the money rather than wait 3 months or so for the extra.

I'm not sure there's much to comment now so it's unlikely I'll post again. It's been good to be part of this community and the active debate of different views. I wish everyone well.

Fair comment and apologies, nothing untoward was meant. You have explained your view better. I didn't think a protracted discussion on the intricancies of tax on here was very beneficial on here but perhaps it is and anyone can feel free to bring it up if they wish. It's just my view and others can decide absolutely.

Tax is very complicated and i’m not sure lengthy discussion is of much interest here. We’ll all make our decision when the offer comes whatever it is.

E mail raises an interesting point. What is it that HIG can see and no one else can ? Perhaps they can but don’t want a bite at the cherry… perhaps it doesn't fit with their strategy… perhaps it not the right time. There could a multitude of reasons.perhaps they are not prepared to pay 45p plus. We probably will never know.

What about trade interest. Are the big parcels carriers going to be interested in a company with 1 to 2% marketshare. In parcels .All DX really have that is attractive is 25% to 30% market share of IDW. Thats the largest… there are competition rules etc.why would someone take that service on board if it alien to them or doesn’t fit with their strategy. Its not as simple as DX are on

Accelerated growth, profitable etc so its a no brainer. …Get your money out lads ?

HIG obviously have a strategy for DX and its quite clear the DX board are onboard with that strategy.

Well the first paragraph is just opinion Deep which we are all entitled to. Who knows what the share would have done if the possible offer hadn't come in. In my opinion it would still be in the mid 30's, In the writers opinion it could have gone beyond 50p, in another it could have gone above 70p. I don't really see how a potential bid holds a share price back , I'd be interested if they qualified that...I would certainly learn something.

The second I simply don't understand and doesn't really mean anything in my view. It depends on the time frame of the capital gain, income level etc, etc. Individiual tax positions are different. It's a bit vague... a bit like some of my posts. !!

I don't know if Lloyd or Gatemore are negotiating anything. Their new letters of intent dated about a week ago say they are happy to accept 48.5p incl the 1p dividend. Due Diligence does take time particularly with a company like DX that is quite diverse in it's operations and infrastructure. I don't think there is anything remotely unusual here. We have an x - dividend date of the 17th of November, extension until the 20 November and an AGM on the 23rd November. It all looks quite cosy to me and I think we'll see the offer as i said at 47.5p. What's that corporate speak that drives me bonkers.... something about ducks in a row. !!

Unsuprising RNS this morning, Two weeks or so further extension to a couple of days after the ex dividend date.. looking like a nicely choreographed announcement of a 47.5p offer.

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.

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.

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.

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.

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.

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?

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 ?

Not much to be said really. It takes as long as it takes.

It's positive that they haven't found anything so far that has caused them to pull out and a little more time if anyone else has their eye on DX.

Thanks Deep. I wasn't far off. The point I am making is that if the possible offer changes to a intentional offer and then it becomes a formal offer put to shareholders they are pretty much guaranteed 30% as long as its above 45p. In that instance it would risky for shareholders who reject the offer because there is no guarantee a subsequent offer would come again anywhere near 46p and we don't know what HIG's plans are for the business and it's legal status depending on what % support for the offer is if it comes. I'd be suprised if HIG don't know the level of support from the other II's owning 3% or more who haven't declared their position publicly like Lloyd and Gatemore. It might all be irrelevant if HIG withdraw.

There is something at the back of mind.I am not a 100% on the takeover code so please don't take this a factually correct. But undertakings have been made to HIG by lloyd and Gatemore of virtually 30% of the issued share capital of the business. At 30% doesn't a mandatory offer then have to made to minority shareholders at a price not less the the highest price in the last twelve months. Therefore if an offer is made at for examples sake 46p to all shareholders and HIG get acceptances of say 50% of the issued share capital then don't they have to make offer to the remaining shareholders. There is no guarantee ofcourse that it would be anywhere 46p ofcourse.

I think there is more to it than that though. Does anyone know any more than me as I don't have the time or inclination to research it now.

No problem with a different opinion e-mail. What underpinned my statement was the following taken from HIG's RNS on the 12 September.

"If DX declares, makes or pays any dividend or distribution or other return of value or payment to its shareholders, H.I.G. reserves the right to make an equivalent reduction to the Possible Offer."

Two of the largest shareholders have already stated they will accept 45p so the question could be...

So in HIG's position why wouldn't you reduce your offer especially if no-one else is in for them?

It's not to say they will though. I have no idea what's going to happen it's just a matter of opinion.