Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Portswigger... Sometimes I read your posts and I think you make quite a convincing arguement not to invest in Dx. Yet you are a shareholder. I'm not trying to be funny or criticise but why did you invest in Dx, why do you continue to invest in them ? If you think there are better opportunities why haven't you invested in them or perhaps you have. I'm don't wish to cause offence...just genuinely interested !
Agree with you on that assessment portswigger. It's going to take time for the new depot leases to become operational and there is no guarantee a license with an administrator will turn into an agreeable lease with a landlord although probable but the legals will probably take a while.. I think the interesting thing will be where these depots are and to what extent are DX taking any Tuffnells fleet or are they using existing as their focus now seems to be electric. Some interesting trades yesterday afterrnoon. Not sure if Buys/Sells as they were around the mid point. I suppose an RNS will tell us if it's anything significant.
Ports... DX are forecast 35m in free cash year end so presuming they have their figures right I don't see the financial commitments causing much difficulty. Also the Tuffnells depot agreement is only an initial licence not lease agreements so there will be a time lag before these become operational so they will have to take on board the immediate new business within existing infrastructure and capacity. I would imagine H1 will be pretty hectic at the sharp end and the interims will give us better picture next year.
Portswigger.......Don't ruin my good mood from this mornings RNS with a bit of sense.!!!!
If this hits 60p by Christmas I'll be doing cartwheels round DX's car park in Slough before booking my world cruise!!
This is old news first notified to the markets in October last year but it seems to have generated some slight positive setiment for a day or so atleast.. !
I don't think anyone is saying it's bad for business. It's just got to be carefully managed. If DX are deliverying say 150,000 + items a day and are logistically set up for that and suddenley you get an influx wanting say another 40K delivered you can't just say yeah.... stick em on the vans. !!
Interesting points raised in the last couple of posts.
Since Tuffnells administration was announced DX share price has done nothing. I agree that in normal circumstances having a competitor go bump is a good thing but the problem is the type of business . There is little lead time. Tuffnells customers will be wanting carriers to pick up the slack immediately, its a fast moving business and alternatives have to have the free resources to do so. It's in motortransport that some in the industry think Tuffnells is the tip of the iceberg. It's quite telling that Tufnells couldn't raise the funding.
It's good to be positive but I agree that too much business can be a bad thing especially if it can't be serviced properly.
Very unlikely Dx will get involved in possibly buying Tuffnells.... Monopolies and Mergers com probably wouldn't allow as both combined take it to 30-40% of the IDW market. It will be interesting to see how it all pans out but there is opportunity for DX in some form. I was expecting a few more depot announcements before year end in a couple of weeks as per their releases. I'll raise an eyebrow if there aren't any.
Opportunity knocks for DX in more ways than one. Suitors line up.!!!!!
Yes... the share price drop is dissapointing but I think opportunity is not far away at this point. If it hits 25p I think there is 20%- 30% or so there in the relatively short term with dividend which sounds OK to me. I may consider it.
Stancroft will have ivested knowing the SP doesn't do much but the dividends and projections must have attracted them as I'm sure they spoke to Dx before Investing. That should give some confidence.
Well Very disappointing news this morning. Losing a contract is never good news for a company but the real question is why.?. Not good for PR . Nevermind, have faith that the tiddler in Wimbledon is going to change the world for the big beasts in America. IM continues to talk a good game but he hasn't delivered.....ever.!!
We'll MrGamble. That's a throw away comment with all due respect. This isn't a Tuffnells discussion board.... I'm not tobothered what Tuffnells are doing. Nothing in the public domain says DX is losing market share and business to Tuffnells. So it's completely meaningless. I could send a parcel for £4.45 by Royal Mail who have been losing nearly a million a day or DPD who charge nearly double and are making alot of money. There is nothing wrong in being the highest price if people want it and pay it. Look at the figures, the profitability, free cash and dividend tell the story.I know it's not IDW... just an example. "Turnover for show..... Profit for dough"
Very eloquently put Ports . I comfort myself that I only now hold three stocks on the AIM all of which pay a dividend.. but I've been a sucker for a smooth talking CEO even very recently which cost me. I think we all learn about the AIM at some point... some quicker than others. Anyway confirmation of further depot growth today which is good and two months of the financial year left. Hopefully , trading is in line with expectations and we can look forward to our 1p ddividend later in the year.
Yes you are right the buy back hasn't started yet. DX though have made the point very clear that they are concerned about the number of shares in issue and outlined the possibility of a share buy back at some point. I tend to agree with Ports that that will come more into the thinking in 2024 especially if the SP continues to pretty much stagnate up to the mid thirties.
I wouldn't worry to much about buying at 32p. Both Lombard and Shroeders bought in above 30p I think and they seem to be quite content at the moment. Mind you they have over 3% of the company so the dividend must be attractive to them to date.
The share price has increased from around 9p this time 2020 to 28p now. That's a very good return for an AIM company in a low margin business. Unless you were in prior to 2015 you've done very well.. It's a slow process now... substantial economic headwinds and a relatively time consuming organic growth. We are where we were at suspension but DX is a stronger company with a new board and capital allocation strategy ... got to give it time !
We can't expect massive growth in such a competive market with margins of 5% to 7%.I think this is a 3 to 5 year play from here. I ask myself if the dividend and projected dividend/buy back is worth it and the wait or can I tempted elsewhere.?
Yes, I would agree the landscape has changed with the appointment of the new BOD so there are many unknowns and let's hope the new board no longer have the propensity to incur extortionate legal fees with the ongoing Tuffnels claim. I do think that is keeping a lid on the share price but not by any great amount. They really need to deal with that.
I'm not to fussed what Lloyd does. He'll make a healthy profit whenever he sells and I don't envisage any great reduction in SP value. I don't think he will drip,maybe he'll sell to a ii, there should be more interest now they are paying a dividend and the positive outlook continues.
On what basis do you think we will hit 40p. DX have said trading is inline with expectations for H2 so unless things go south in the last three months for some reason we'll hit expectations and the second half dividend. How is sentiment going to change to meet 40p. A 35-40% increase in the SP with further dilution. I think we'll be lucky to sustain anything above 35p. The market isn't following the positivity.
To well looked after these DX's directors aren't they to say the least and 35M share options still outstanding. Don't think my bail out point is that far away.!
Ports. I agree with your sentiments on DX and the AIM in general.DX's current mcap is pretty punchy at 175-180m.Markets will have built in growth of 10-15% PA and an increase in margin. It's not really driving sentiment andi don't see that a proportional increase in dividend will have any great affect. Historically DX's growth has always come from sustained director buying over a period of time, depot openings and steady turnover growth / and profitabilty has done nothing to the SP but got us to the position of a dividend payment..I really struggle to see where SP growth above 40p is going to come from. Share buy back probably.
THe AIM really is a very strange place. One of my shares has 83M in the bank., paying a dividend .. no debt and a mcap of 50 odd million. If only I had the money !!!
Sarchasm doesn't suit you pokerchips. Seems to me that alternative views and general thoughts and observations from
a w...n won't be tolerated on this board. Anyway I've had some fun reading your posts and I hope the bird fan club on here and advfn realises it's dreams. I knew it was a mistake to come back.