DPC -Property Investors??

[blackcap]

I know they are looking to diversify but into the property market?

Isnt this outside their area of expertise?

Following is their announcement made today.

Would be interested in others comments on this development.

DPC02/08/2004ASSET REL: 1743 HRS Dorchester Pacific Limited ASSET: DPC: DORCHESTER ANNOUNCES PROPERTY PURCHASE Dorchester Capital Limited, wholly owned subsidiary company of DorchesterPacific Limited has today announced the purchase of Auckland Club Tower. Mr Brent King, Managing Director said, "we are pleased to announce thepurchase of Auckland Club Tower by our subsidiary Dorchester Capital Ltd.Settlement will be on or before 30 September 2004, purchase price $23.25million. The building is tenanted by Dorchester Pacific Ltd, SAI Life andSave & Invest head office, Dorchester Finance Ltd's Funding, Property andEquipment Lending divisions plus 12 other tenants."

[blackcap]

Ok I cant beleive that no one has commented on this purchase, as for a lot of you, I know DPC is a share that you hold. Is this the end of DPC as we know it: They have in the last year or so--

Purchased a stake in Spectrum Resources

Purchased a stake in 42 Below

Now purchased a building in Auckland

Taken a stake in Salvus Strategic Investments Limited

Nice to know they are looking at diversification but really outside their core business model. The implication here for mine is that if they stray too far from the proven, it may cause investor anxiety and/or a re-rating of their share price.

Or am I just being paranoid?

[ragwort]

Yeah Blackcap. Will be interesting to see what their future strategy is. I agree that it is a step into the unknown in that they do seem to moving away from their core business and what they know best. DPC has treated me well in the past but will watching closely over the next wee while. If I wanted to increase exposure to commercial property I would look at a specialist property company.

[kittydashwood]

*
NBR Personal Investor: Trans Tasman Properties fills its Auckland Club Tower fast
------------------------------------------------------------------------
Friday 8th June 2001

FILLING UP: Trans Tasman Properties has leased six of the buildings nine floors over the past four months By Campbell McIlroy

Trans Tasman Properties has been leasing up a storm in the Auckland Club Tower following the departure of anchor tenant Bell Gully.

Chief operating officer Bruce Catley said Trans Tasman Properties had successfully leased six of the building's nine floors, all on six-year leases.

When Bell Gully moved out in January it still had four months until its lease expired in May.

In that time Trans Tasman Properties has managed to sign Dialogic to three floors, Owlcentral to one floor, a group of three smaller tenants made up of lawyers and financiers to another floor; and is finalising a lease with a small legal firm for another floor.

Mr Catley said the net effective rentals ranged from $205-220 a sq m.

"It's still a tough leasing market but it's good to be able to get the space away quickly. There is a sign of some tenants taking the opportunity to upgrade from C grade to B grade offices," he said.

While the battle for tenants has become incredibly competitive, Mr Catley said the average level of incentives for the building would have been in the region of 12 months rent free.



For DPC it means three floors of lease expire in June 2007. Price marginally above book value for TTP. I doubt this signals a change of direction for the company, the purchase may be a way of fixing rents for subsidaries before the rate hikes hit CBD rentals.

[Halebop]

Have they highlighted the source of their financing for the tower? I wonder if they are using a Borrow Short / Lend Long strategy via Dorchester Finance or the like? Depending on the yield it would probably be earnings accretive anyway while also providing tax deferral benefits, albeit raising their liquidity risk at the same time.

Their various other deals mentioned by Blackcap don't exactly scream quality but that doesn't mean they won't be profitable and they are fairly small in the scheme of things. Still, worth keeping tabs to see if this sort of stuff continues - more of the same would have to be a drag on operating earnings at some point.

Disc: None

[Lawso]

DPC's agm will be in Auckland on 24 August. A timely opportunity to ask BK about these issues.
I still can't figure out the Spectrum investment. The stake in FTB is perhaps understandable since Dorch and Direct Broking handled the float. Both of those are peanuts, as Halebop points out..
Buying the office building would involve real money but I for one am relaxed about it. A financial services business shouldn't need a lot of capital and if the money's in the bank why not invest it in the building you occupy and be a landlord instead of a tenant. It's an altogether different scenario from, say, a manufacturer who can make better use of capital in the business instead of having it tied up in real estate.

[Lawso]

Blackcap: You started this thread at 9.55 last night and by lunchtime today you're berating us for not responding. Some of us do have other things in our lives ;)

[blackcap]

quote:Originally posted by Lawso

Blackcap: You started this thread at 9.55 last night and by lunchtime today you're berating us for not responding. Some of us do have other things in our lives ;)


Fair call Lawso, the intent was really to keep it near the top of the pages and not let it drift into obscurity on page two.

Wasnt trying to sound berating but probably ended up doing so.

Thanks for the replies to date.

[Lawso]

A further thought for Blackcap and any others feeling nervous about DPC straying "outside their area of expertise". You don't need a lot of expertise to buy a building in which you're already a tenant. It's blue-chip CBD after all. And doubtless they'll use a property manager to collect the rents etc from the other tenants. To me the deal makes a lot of sense, tho' it will be interesting to find out more about how they're financing it.

[Prophet]

...oh so you're the one making it difficult for me to secure more of the warrants![8D]

[Prophet]

Blackcap - The recent Money Online purchase was hardly outside their area of expertise.

[thereslifeafter87]

I think DPC will struggle in the finance industry short-term with all the new competition that is taking off. Has anyone seen the amount of ads for personal finance companies on TV lately? It is simply crazy!

Long term they may be able to profit from consolidation, but in the next little while may struggle. That could be why they are looking to invest capital elsewhere...

[Bobby]

Yes - but those guys cater for the low-credit rating mob - remember DPC is not just about providing credit facilities

[Lawso]

Agree, Bobby. DPC aren't particularly interested in the personal finance type of lending to the no-hopers, which what the loan sharks thrive on. DPC is mainly into business finance, where they can charge a comparatively high rate of interest to companies, entrepreneurs, foresters, farmers etc who for whatever reason can't get bank finance.

And DPC is a much stronger company than it used to be, with its varied interests now in auto finance (Senate), superannuation, savings and reverse mortgage products (Save & Invest), sharebroking (Direct and Equity) etc. Not forgetting becoming a CBD rent collector instead of a payer.

DPC's year-on-year assets and earnings growth makes an impressive story IMO. No reason that I can see why this shouldn't continue.

[k1w1]

Ever thought of doing infomercials, Lawso ?

[Bobby]

DPC has thousands of luminous spheres.

[k1w1]

"But wait...there's more " !

[Steve]

Is Brent King the same Brent King of General Properties Corporation Ltd from the 80s/90s?

[Oracle]

Prophet & Long Strangle

I have put some DPCWA on the market for you, @ $1.20.
Good price, specially discounted for you.

[Prophet]

Not so attractive when someone is undercutting you by 5c a warrant. Equally not so attractive when the heads are at 280 and the exercise price is 170:D

[blackcap]

quote:Originally posted by Oracle

Prophet & Long Strangle

I have put some DPCWA on the market for you, @ $1.20.
Good price, specially discounted for you.


Haha, very clever Oracle. Wonder who's gonna fall for that one.

Regards!

[blackcap]

So what do ppl make of this mornings announcement?

What does Bridgecorp want with DPC and why did they pay what they did for the 19.9% stake. ( i have heard the figure of $4 per share bandied around but have not read it for myself yet.)

I know it is only a shareholder selling to another but Brenk King has been an integral part of DPC for many years and Bridgecorp are a different kettle of fish.

Dont know what to make of it at the moment.

[Oracle]

BC

King speaks of rationalisation. Presumably he sees a merger at some stage. More size for DPC. Helps fill the building. However if this is the plan, the rest of the Board would have known?

[thereslifeafter87]

I think the price was $3.05 per share, but don't quote me. The NZX SSH announcements are not easy to interpret.

Maybe Brent is getting old? Wants to buy a nice beach place to retire to? who knows....

[Steve]

quote:Originally posted by Steve

Is Brent King the same Brent King of General Properties Corporation Ltd from the 80s/90s?


Anybody know???

[Prophet]

Hey LS did you get your fill in the end?

How sure are you on those prices. I've heard the $4.05 for the heads but not a whisper on the warrants;)

[Nimble]

Here are a few more details. With time could be a backdoor listing for Bridgecorp. I know they have been trying for years.

Bridgecorp buys 20% of Dorchester
16th August 2004
Dorchester Pacific founder Brent King has sold 15% of his company to Rod Petricevic's Bridgecorp. Bridgecorp has also picked up sufficient shares from other Dorchester Pacific shareholders to take its stake to just below the crucial 20% mark.
Bridgecorp, which is a public but unlisted finance company specialising in property investment, is paying a huge premium at $4 a share, or $16.7 million, compared with the current share price of $2.80 to gain the stake. The deal will make Bridgecorp, Dorchester Pacific's largest shareholder.
Petricevic agrees that his company has long had ambitions to become a listed company but says it is too soon to regard Dorchester Pacific as a backdoor listing vehicle. "We've taken what we call a strategic investment," Petricevic says. If Bridgecorp wants to increase its stake beyond 20%, it will have to make an offer to all shareholders.
While he hasn't had access to all Dorchester Pacific's financial details and files, "it's a matter of seeing whether there are some synergies there, whether there are some savings that can be made. We're pretty impressed with Dorchester Pacific generally."
While Bridgecorp's business is all property based, Petricevic estimates only about 20% of Dorchester Pacific's is. "They have motor vehicle finance, consumer finance, share broking - there are a number of things there that interest us. Whether things can be done to add value for all shareholders is something we have to look at as we go forward."
Significantly, Dorchester Pacific chairman Murray Radford said in a statement that his company's director, except for King, "have had no contact with representatives of Bridgecorp but expect to do so in the near future."
King says he hadn't been thinking of selling any shares until Bridgecorp approached him and that he decided to sell for personal reasons.
"I was at the top of a staircase and I thought if I fell down the stairs, what would my kids do," King says. He has four children, two girls and two boys aged between nine and 16.
King will retain a little over 5% of Dorchester Pacific, which he founded in 1985 and took it public in 1991 through a reverse takeover of Venture Pacific, a Jarden's company which was then just a shell. It has since grown into a diversified financial services company with a current market value of $58.6 million. Despite reducing his stake, King says he intends to remain Dorchester Pacific's managing director.
Bridgecorp, which reported a $2.7 million net profit for the six months ended December when it had $52.1 million in shareholders' equity, has tried to become a listed company before but has been turned down by the New Zealand Exchange and Petricevic is on record as blaming this on his past. A former partner of Sir Michael Fay and David Richwhite, Petricevic founded Euro National which listed in 1985 but then went on to be among the number of companies to suffer in the 1987 share market crash. It posted a $255 million loss in 1998, the year Petricevic resigned from the board and sold out, but never actually collapsed and is now part of the CDL Hotels group.

[Prophet]

The WA's have been a screaming bargain and I only wish I'd been able to pick up more under $1.10.

It will be interesting to see how things unfold with Bridgecorp. Might have to make an appearance at the AGM next week.

[Lawso]

If wotsisnamovic was willing to pay 405 for DPC ords how come the market is still only pricing them around 290? - up just 1c today to 291. BK appears to have been a willing seller and it's not as if thingumyovic was paying a premium for control, tho' no doubt he'll get a seat on the board. Something doesn't figure - well, not to my simple mind. Can anyone explain?

[KJ]

The premium paid clearly demonstrates how keen Petricevic is to ultimately get control of a listed coy.

From the Herald-"P boasted that Bridgecorp was twice Dorchester's size,with a $650m loan portfolio compared with Dorchester's $350m"

Both King and P talk of rationalisation in the industry.

It will be interesting to see what follows after P decomes a Director of Dorchester.

[blackcap]

quote:Originally posted by Lawso

If wotsisnamovic was willing to pay 405 for DPC ords how come the market is still only pricing them around 290? - up just 1c today to 291. BK appears to have been a willing seller and it's not as if thingumyovic was paying a premium for control, tho' no doubt he'll get a seat on the board. Something doesn't figure - well, not to my simple mind. Can anyone explain?


Yep to get 19.9 percent any other way would be near impossible and if he did buy it on market then he would have to drive the price up to $4 to get them anyway and it would take a long time. Well that is my thinking. This way Bridgecorp get the stake they want, cleanly, quickly and probably a seat on the board shortly. Ultimatley there might be synergies, as they are in similar markets which could be beneficial to both companies.

[k1w1]

My what a lovely group of people are congregating around this company.

[Oracle]

lawso

It is surprising, that they have settled back to where they were, almost. The prospect of further developments, does warrant some safe speculation. You would think that would be enough small buyers to push it to $3 at least. It just reflects how little interest there has been in this share. Just because of its small size, too small for institutions. The warrants are a good buy, as the leverage on the price he paid, was very good.

[Lawso]

Thanks for your thoughts, guys. Yes, you would think there would be more small buyers around, and makes you wonder why sellers haven't held out for more. Interesting to watch furher developments. And, as Oracle says, the warrants are looking good, especially for those of us who got them for NOTHING less than 12 months ago:)

[KJ]

Oracle-I think you are spot on re the warrants.

[Steve]

quote:Originally posted by Steve

Is Brent King the same Brent King of General Properties Corporation Ltd from the 80s/90s?


DOES ANYONE KNOW???

[blackcap]

Sorry cant help you there Steve.

Interesting article in todays herald about the board not knowing of Brents decision to sell. See following link.

http://www.nzherald.co.nz/business/businessstorydisplay.cfm?storyID=3585776&thesection=business&thesubsection=dialogue&thesecondsubsection=&thetickercode=

However rather than a merger, I beleive it will be a reverse takeover, (purely for logistical reasons). I see Bridgecorp getting board representation. They will then sus out if there are any synergies available and then look to negotiate with DPC as to terms of merger/takeover.

I think it could be beneficial for both companies especially if their loan books are in different secors as it will diversify their lending, thus reducing the risk.

Anyway it is interestingly poised at this present time. MAy look on unlisted.co.nz and put in a cheeky bid for some Bridgecorp.

[kittydashwood]

It's interesting allright but puts me off having unsecured debentures with DPC.[V]

[k1w1]

Lie down with dogs and your going to get fleas....

[Toulouse - Luzern]

Hi,

Agree, KittyDashwood.

Mr & Mrs TL currently have debs with DP and others but none with Bridgecorp.

We chose to avoid the associated risk profile of Bridgecorp. Does anyone remember Fountain Corp listing on NZSE. (HiFi manufacturer)

As I recall a reverse takover created Chase Corp .....

Posters would any of you if you were in Brent Kings position go and discuss it with your board first if you were offered a 40% premium for some of your shares and you are still left with over a 5% holding in the company. If the offer had been made publicly it would have been different. Also there may have been a confidentallity clause in it. As for Bridgecorp I would far sooner invest with them than Hanover.

[kittydashwood]

I would invest with neither.

Well Kitty who would you invest with in that line.

[kittydashwood]

I'm no expert on fixed rate instruments Enigma.
Only 10% of the funds I manage are held as cash or term deposit and I have never found a satisfactory balance between great returns and safety in this country. Instead I held a number of small size rolling six month terms with numerous outfits. I guess hoping to spread the risk. Held with HSBC, DPC, Marac and the ASB; the cash and term manages an average return of 6.8%

I like the DPC shareholder bonus rate and HSBC gives good currencey service. Does PGC give shareholder bonus rates on Marac terms?

I guess I do also have a safety deposit box full of old silver bullion ( to be liquidated when silver hits 25$), which is about as loss proof as you get.

[lanenz]

Whats going on this this company?
Is it a takover target for a steal or what. Any thoughts welcome.

[Prophet]

Just a theory but the typical shareholder in DPC is older and more experienced (but maybe not wise). Probably have long memories of Pet***vich and his market dealings in the 80's and would rather not risk their capital around him again.

My opinion is that DPC is a steal at current prices (particularly its options which have little time value priced in). DPC is a well run company with a solid earnings history and conservative lending policies. This I have no doubt will continue and this was the message at the AGM. B King selling out is not really a concern, he's prudently chosen to take $4 a share now rather than wait another year or two for Bridgecorp to make their move for the rest of the company. There is no doubt in my mind that DPC is in play (corporatly speaking) and this coupled with my TA observation that a significant ascending triangle (top $2.90, first peak late Jan 2004) is being developed with upside well over $3 says to me that investors selling out are doing so because they have been burnt once before and not because they understand the situation that is currently unfolding.

As further evidence one might also look at the recent trend of steady to rising head prices on markedly higher volume to see people are in the market moping up as much of this tightly held script as they can. For my own part I am one of these people.

Disc Hold DPC, DPCWA and DPCWB

[lanenz]

Thanks for those comments. But I thought a lot of the volume being traded was not on the open market which raises a few suspicious thoughts

[blackcap]

quote:Originally posted by Prophet



My opinion is that DPC is a steal at current prices (particularly its options which have little time value priced in).

Prophet, be careful with that one. Almost no time value left. What does it cost to borrow $1.70 at say 8%? Yep about the dividend payout on the Heads which the warrants do not participate in.

The chance of DPC going under $1.70 in the next 2 years is now so minimal so the risk premium does not apply either.

Dimebag summed it up nicely a while back, and the above is pretty much what he was getting at.

Hope this helps.

[Prophet]

I think you'll find a noticable step up in daily volume in recent weeks. Remember this is a good company that is tightly held so history has generally reflected very low daily volume. Low liquidity is one of the reasons that insto's overlook this stock and partly why the warrants were introduced.

[Oracle]

The step-up in volume is probably just speculation that something will happen with Bridgecorp. IMHO something will happen. DPC has a good name, but it needs more size in its business, & more liquidity in its stock.

DPC has increasing opposition. If you look at the Marac part of the PGC result, they did well. They also have the property lending exposure, which Bridgecorp will give to DPC.

After reading the PGC report, I believe that PGC will soon become Marac Finance Ltd. The PGG shares will be given to the PGC shareholders, & Perpetual will be spun off, perhaps after another event that increases its size.

IMHO in that environment, especially with Dominion, & Hanover maybe, DPC needs Bridgecorp.

[Steve]

quote:Originally posted by k1w1

Lie down with dogs and your going to get fleas....


Interesting news release this morning...possible breach of Takeovers Code!!! Watch this space...

AGAIN I ask, is this Brent King the same Brent King associated with General Properties Corporation Limited from the late 80's/early 90's?!

[k1w1]

Yup, oh , yup...

What a surprise Bridgecorp complying with neither the letter nor the spirit of the law.

If even the Board is being asked to touch their toes what sort of position do you think you might find yourself in.Bet all you small holders can sleep secure in your beds knowing this predator is aboard your ship.

It might be a good idea to reserve the phone no 0800 WIDE BOYS for when Roddie and the boys get control.

[lambton]

quote:Originally posted by Steve


quote:Originally posted by k1w1

Lie down with dogs and your going to get fleas....


Interesting news release this morning...possible breach of Takeovers Code!!! Watch this space...

AGAIN I ask, is this Brent King the same Brent King associated with General Properties Corporation Limited from the late 80's/early 90's?!

Looks like game set and match to me ..... but does the Takeovers Panel have the guts to do anything about the breach.
Just a rumour, but there is talk that DSE and ING are sniffing around looking for a piece. What that means I have no idea, but as they say birds of a feather etc.

[thereslifeafter87]

Brent King contracted to accept a takeover offer at $3.30 per share.....

Does this signal possible offer coming to anyone?

Possible arbitrage/workout opportunity here?

Could buy at 2.85, sell on takeover at $3.30...

17% gain?

[lambton]

Maybe there is a bob in this share, but remember when you swim in shark infested waters you risk losing a limb or two.

[Prophet]

Blackcap - Time value is next to zip based on $2.90 (technical agreement on price hence resistance) less $1.70 exercise in Sept 05 for WA's and ditto for WB's in 06. WA's are worth under the $1.20 delta - I got 10k of them yesterday for $1.15. WB's have about 7c time value but thats cheap financing for the 2years leverage play it gives you. Just a quick point about my $2.90 head price basis. I'm not an arbitrage player and so +/- a couple of cents isn't a big deal for me when I see a pretty sound 30+% play over the next 12mths on the WA's. My calcs as follows; King agrees with Pet**vic a min sell price by June 2005 of $3.30 less $2.90 gives 40c dif or a 14% rise on the heads. Taking the leveraged route with the WA's which are in the money that 40c will accrue to the options cent for cent thus when the heads are $3.30 the WA's, excluding any time value premium, will be $1.60 or 33% above where they are now. Even if the TKOP rain on my parade, re today's announcement, we have King and Pet**vic, two people very much in the know, having determined a fair future price of of $3.30 come June next year. TKOP's decisions will have no bearing on the running of DPC so no risk there unless King gets put in jail - which I doubt.

TLA87 - yes but think the leveraged option per my comments above.

[Steve]

Is Brent King a Member of the NZX? If so,

a) he should be well aware of the rules
b) if it is found by the TKOP that he has not followed the rules, the NZX has the power to 'smack his hand'

[Bubble Boy]

Unfortunatley the only thing they can do is slap his wrist and call him a naughty boy. Shame that NZX has no powers.

[Prophet]

TKOP are taking the approach that the deal implies they are associates so it doesn't matter who had the duty of disclosure. King is stating the he controls the shares and their rights therefore no issue arises. Could be interesting and potentially landmark. TKOP don't have a great history of wielding a big stick.

Well done to the man/lady that picked up some WA's at $1.06 this this morning albeit a small parcel.

[Steve]

quote:At a meeting held in Auckland on 6 and 7 September 2004 the Takeovers Paneldetermined:

o that it is not satisfied that Bridgecorp Capital Limited and its controlling shareholder Bridgecorp Holdings Limited acted in compliance with the Takeovers Code when it acquired 19.99% of the voting rights of Dorchester Pacific Limited from Brent Douglas King and others on or about 13 August 2004;

o that it is not satisfied that Brent Douglas King acted in compliance with the Takeovers Code when he acquired voting shares in Dorchester Pacific Limited from Alexander Eric Vink and Natasha Maree Vink during the period 12 August 2004 to 16 August 2004.

The restraining orders made by the Panel on 30 August 2004 have been continued in force until 29 September 2004.

Well, it does not appear to make Mr King look that good???

[blackcap]

Interesting, a SSH notice just through that shows Hugh Green Investments acquiring another 446,000 DPC shares in the last month taking their total holding to 11.32%.

I dare say this is positive for the company?

[k1w1]

Maybe Hugh Green doesnt want Rod P dominating this company He has got the money if he choses to mix it with them

[blackcap]

quote:Originally posted by k1w1

Maybe Hugh Green doesnt want Rod P dominating this company He has got the money if he choses to mix it with them


Your not wrong there, Kiwi, he certainly does have the money. But this is interesting. He has been steadily acquiring these shares up to $2.85. Wonder who is selling. If he emerges as another potential cornerstone holder, it can only be good news for DPC shareholders. Maybe though he will ultimately be a seller to Bridgecorp knowing that they will pay a premium for stock?

[blackcap]

And as I write, in comes the panel decision. 1 Million shares need to be sold within 60 days. Now that is interesting.

[Steve]

Interesting that the fighting 'talk' of taking the matter to court has vanished...

[Lawso]

The wet-bus-ticket decision by the TKOP bears out what I've said all along - that this was a storm in a teacup. No penalties apparently, and neither there should be - except that BK and RP will have spent plenty on lawyer fees.

DPC share price has barely flickered. Also interesting to see Hugh Green Investments still building up their stake. HG is a long-time holder and obviously has great faith in the company.

Expecting the s p to nudge past $3 as this little row fades away. And expect RP to return to the fray mid-2005. That will make things even more interesting for DPC holders.

[Prophet]

Right on Lawso. I'm looking around for a few $$ to further build my holding if the price sags over the next 60 days. The underlying fact is this is a good company that is apparently in play.

[Steve]

quote:Originally posted by blackcap

I know they are looking to diversify but into the property market?

Isnt this outside their area of expertise?

Following is their announcement made today.

Would be interested in others comments on this development.

DPC02/08/2004ASSET REL: 1743 HRS Dorchester Pacific Limited ASSET: DPC: DORCHESTER ANNOUNCES PROPERTY PURCHASE Dorchester Capital Limited, wholly owned subsidiary company of DorchesterPacific Limited has today announced the purchase of Auckland Club Tower. Mr Brent King, Managing Director said, "we are pleased to announce thepurchase of Auckland Club Tower by our subsidiary Dorchester Capital Ltd.Settlement will be on or before 30 September 2004, purchase price $23.25million. The building is tenanted by Dorchester Pacific Ltd, SAI Life andSave & Invest head office, Dorchester Finance Ltd's Funding, Property andEquipment Lending divisions plus 12 other tenants."


Getting this thread back to its original topic...and to answer my own question:

In the days of Dorchester & Smythe, Brent King was a director in General Properties which 'imploded' some 7 years ago from memory. The companies office should have copies of the various liquidators reports if any one is interested.

Does this count as expertise?;)

Disc:not a shareholder, but still using Direct from the pre-DPC days.

[thereslifeafter87]

Brent King may have been on the board of a failed '80's coy, but he held DPC together through the crash and has grown it well to this point...

There is life after 87 which crash

[thereslifeafter87]

The big one.... '87

TLA 87 It did not Exist DPC was Pacific venture capital at that time or NZ venture capital I owned shares in it about 1990 it was used to list dorchester & smythe

[Steve]

TLA87 it wasn't the '87 crash that did General Properties in...

[madmike]

quote:Originally posted by Steve

TLA87 it wasn't the '87 crash that did General Properties in...


come on steve....give us the oil (ie put up or shut up!!)

[Lawso]

quotes from Enigma and tla87:

quote: ENIGMA


There is life after 87: Which crash?

thereslifeafter87

The big one.... '87

And I've been thinking all along his name was something to do with his age. ;)

[Steve]

quote:Originally posted by madmike
come on steve....give us the oil (ie put up or shut up!!)


Madmike, I have already put up, refer about 8 posts up where i suggested looking at the liquidator reports at the companies office if interested. Best to form your own opinion based "straight from the horses mouth"...

[madmike]

quote:Originally posted by Steve


quote:Originally posted by madmike
come on steve....give us the oil (ie put up or shut up!!)


Madmike, I have already put up, refer about 8 posts up where i suggested looking at the liquidator reports at the companies office if interested. Best to form your own opinion based "straight from the horses mouth"...


Hey Steve....provide us with a link to the report...i'm not going down to the companies office to get me a copy. obvoiusly you have a copy and there's some "good reading" re Brent King's past in it by all the "hints" you have been dropping...give us some quotes.

as you have seen in my thread regarding King & petrecevic there was a link to the NZX report which was quite "juicey" reading.cant wait for BGP's annual report due out in the next 4 weeks to read about the "events after balance date" (dont think they will be much but you never know)

main questions re this sad saga are:
1) will king still get his $600k
2) will king pay back the cool $1m he earnt on the vink kids shares
3) will petrecevic get a seat on the board
4) anyone seen the $7m property king has got in aust.....is that where he's going to retire to??...must be a bit of a dog if BGP wsa going to have to write the value of the mortgage down!!??
5) when is nicole kidman going to go out with king or petrecivic or are the boys happy with each other...at the moment(will we see them walking hand in hand at the melbourne cup carnival)?

it all reads like a bloody good soap...far better than coro

so steve...give us the oil on king or i'll send hilda ogden over to sit on your face!!

[Oracle]

Whilst the idiotic tripe on this thread continues, the price of DPC has shown a good improvement.

I am sure the past and recent events re King etc. are now irrelevant.

In a short time, Bridgecorp will make an offer, IMHO. They will not want to get left behind by Marac, St Laurence, Elders etc.

[Nimble]

Dorchester Pacific releases financial forecasts
02.10.2004
Dorchester Pacific has released financial forecasts that were not previously publicly available but which were part of a confidentiality agreement between Bridgecorp and Dorchester managing director Brent King.
Chairman Murray Radford said the information - financial forecasts from January and February - was largely out of date by the time the Bridgecorp deal was done, and noted that projected numbers for 2005 were similar to those achieved this year. Despite that, the board had released the forecasts in the interests of transparency and to address speculation about what they contained.

Below is copy of information taken from dorchester website. Forecasts were prepared in Jan/Feb 04 for 2005 year.

2005 Plan

The Plan is a commentary on financial, management, governance and marketing matters, with the financial information being supported by subsidiary budgets.

Market comment has tended to focus on the notes made by Bridgecorp representatives and the possibility that those notes related to price sensitive matters.

The information in the Plan, in respect of the 2005 year, that was noted by Bridgecorp representatives was as follows:

Targets Return on equity 20%.
Return on total assets 1.8%.
Growth in Net profit after tax 17.5%
Growth in equity 15%
Growth in revenue 10%
Growth in assets 15%

Forecast profit ($’s) Finance division 6,665,052
Consulting division 1,635,513
Insurance division 2,161,894
Corporate costs (3,070,418)

Net profit before tax and goodwill 7,392,041
Goodwill write-down (1,013,904)

Net profit before tax 6,378,137

Net profit after tax 6,050,129


Net profit by sector Losses were forecast in 2005 at:
Dorchester Finance, Christchurch $87,000
Dorchester Finance, Hamilton $106,000

Profits were forecast at:
Senate $2.2 million
Property finance loans $1.7 million
SAI Life $1.6 million


It should be noted that the above forecasts were prepared in January and February 2004, and the projected totals for the 2005 year are close to the actual result achieved for the 2004 year. As such they are in line with the announcement to NZX on 21 September 2004 that "the Dorchester group is currently trading consistent with results achieved in the last financial year".

Board Papers for the Meeting on 6 July 2004

a) Trading results for April and May 2004

The Board papers disclosed the trading results for April and May 2004. In summary, those results showed net profit after tax of $520,545 for the two months compared with the budget of $413,286.

b) Loans

The Board papers included information on property-related loans by Dorchester Finance, Auckland branch, including a schedule of major loans, impaired and past due loans, and specific doubtful debt provisions. As at 31 May 2004 there were 17 loans in excess of $1 million totaling $49.9 million. The total of loan arrears of all property-related loans was $5.6 million and specific bad debt provisions of $1.1 million.

Board Representation

The Board is aware of the speculation surrounding Bridgecorp’s aspirations for Board representation.

The Board has not received any approach from Bridgecorp regarding Board representation.

Should Bridgecorp approach the Board in respect of Board representation the Board will assess the matter on its merits at that time as it would with any other approach.


Managing Director’s Tenure

The Board is aware that comments have been made surrounding the Managing Director’s tenure.

The Board notes that Brent King made a statement to the Company's annual meeting on 24 August 2004 that he had no intention of leaving Dorchester and wished to remain in his current role.

Brent King confirmed to the directors at the Board Meeting last Wednesday that his comments at that annual meeting remain valid and he wishes to and intends to continue as managing director of Dorchester.


Current Trading

Results for the 6 months trading to 30 September 2004 will be released in du

[Nimble]

Good to see the information released to everyone. The 2004 information obviously makes this info rather out of date. However interesting to look at their numbers.
I find the following two comments contradictory. Interested in others interpretations.
1. Announcement to NZX on 21 September 2004 that "the Dorchester group is currently trading consistent with results achieved in the last financial year". Does this mean they are currently experiencing zero growth?

2. In next paragraph however it says "The Board papers disclosed the trading results for April and May 2004. In summary, those results showed net profit after tax of $520,545 for the two months compared with the budget of $413,286." [This is 26% ahead of budget]

[thereslifeafter87]

quote:Originally posted by ENIGMA

TLA 87 It did not Exist DPC was Pacific venture capital at that time or NZ venture capital I owned shares in it about 1990 it was used to list dorchester & smythe


Enigma,

I remember reading in a Gaynor article about companies that survived the '87 crash. Dorchester (or its predecessors) was mentioned.

[Bobby]

Very good point Nimble - Assuming the profit figure is correct - this accounts for no growth over the year! Should Senate, FAI, etc be seprartely added on? Can someone explain this?

[Nimble]

As an addition to my comments above;
"Current indications are that the result for the first half of the current financial year will be in line with budget."
At the end of May they were 26% ahead of budget, now they are in line with budget. June, July and/or August can't have been too good. Still don't know how budget relates to 2004 result re my post above.

[thereslifeafter87]

I would email or call the company for a clarification if I was a shareholder....

[Nimble]

HY to 30/09/2004 $2.706m ($2.424m) +11.6% Div 4.5cps
Revenue +24.6%
NPAT +11.6%
EPS +8.3%
Dividend +4.6%
Mr King said, "I expect that the full year result should show an increase over last year similar to that achieved in the first six months".

Although not mentioned in the commentary the "unrealised net change in value of investment properties (1,500) –" has had a big impact on HY profitability. If you exclude it profit would be up by 73%. If FY only going to be up by similar 11.6% then must be expecting more write downs.

[blackcap]

quote:[i]

Although not mentioned in the commentary the "unrealised net change in value of investment properties (1,500) –" has had a big impact on HY profitability. If you exclude it profit would be up by 73%. If FY only going to be up by similar 11.6% then must be expecting more write downs.


In my opinion I think there might be some "earnings management" going on.