RE: What's in store...?.3 Jan 2016 08:53
hi ruga.
there are two different issues involved.
firstly, is DAN the company doing OK
in terms of underlying business, assets
and cash-flow? secondly, where will DAN
holders be able to deal in its shares?
if the underlying company is actually sound,
solvent, and doing well, then your shares
should still be worth some money to you, but
it may take a while to be able to cash them in,
because of the issues around the second matter.
if the shares become delisted from AIM, you as an
ordinary PI won't be able to do anything at all with
them unless the company either manages to get
the shares listed on another market, or sets up a
matched bargain facility. if on another market, then
you should be able to sell the shares, providing you
have a broker who is prepared to deal on that new
market. you will probably find that the spreads will
be wider, and the broker will charge you a higher fee.
if the company sets up a 'matched bargain' facility,
(a less preferable option for pis than another listing)
they will have to explain how investors can access it;
essentially, you would only be able to sell your shares
if there is another investor out there at the same time
who is willing to take that specific chunk of shares off
your hands. so in principal it would allow you to sell,
but in practice it can take ages for a trade to get set up,
and often the price achieved will not be good; effective
spreads would be very wide, reflecting lack of liquidity.
your best option of course is to have the shares remain
on AIM and come out of suspension, in order for this
to happen, they need to find a nomad quickly, but also
still need to finalise audited accounts for last year.
if the underlying business is actually doing very badly,
then your shares won't actually be worth very much at
all even if the company does find a way to list on another
market sets up a matched bargain facility. (& matched
bargains would be very hard to set up, as few people
would want to take the other side of the trade.)
clearly, there seem to be some very different views on
the bb about whether the underlying business at DAN is
OK or now, with some posters apparently still optimistic
on that. i think in truth it's hard to be very certain about it
one way or the other, since investors do not have properly
audited figures to go on, but personally i thought last
set of unaudited figures did not paint a good picture.
if the company is doing badly, then the question will be whether
it is doing so badly that it cannot continue to raise new money
when needed, & loses the confidence of clients to continue
dealing with it (- &/or runs out of cash to bear the costs of
servicing its existing clients - ), versus being able to still generate
enough cash + raise additional cash to keep ticking over, in which
case your shares would still be worth something, but progressively
less &