http://www.sharechat.co.nz/article/e...m-chairmanhtml
I was very impressed that DPC tied up the Bartel Holdings shares.
I brought in this afternoon at 23.5cents.
Prospectus for the turners takeover bonds is out.
They have no intention to list the so I suppose this belongs here rather than the NZDX section.
The bonds are 2 year 9% with quarterly payments and a conversion option.
I'm fairly keen to apply for some but if anyone with insight in to the business/default risk wants to chime in it would be greatly appreciated.
and yes I'm aware that given the small size of the issue and that turners/Dorchester shareholders get priority odds are I won't get any anyway.
https://www.nzx.com/files/attachments/199326.pdf
Well today's market update had the "smell of money" about it to me.Doubled my holding at 25cents this afternoon.
I agree Percy. It is a continuing pattern of upgrades at DPC. Some more colour is given in the RNZ interview. http://www.radionz.co.nz/national/pr...nings-guidance
But of more interest to me was the details about how the acquisition will be funded. From this I can calculate a normalised pe for FY16 (year ending 31 march 2016)
First some assumptions:
1. DPC get 100% ownership
2. All Convertable notes are converted
Additional Capital raised based on 100% ownership $48mill @25c per share. I included the convertible notes in my eps calculcation. I know this is not technically correct, but they will probably convert at a later date. In any, case, the number of shares on issue should reflect this.
The number of new shares issued = 48Mill/.25c= 192mill shares. Add this to the existing shares and we get 685mill shares
Now the profit. DPC stated here that NPBT for FY16 with 100% ownership is $25mil
https://www.nzx.com/companies/DPC/announcements/253161
While they won't pay full tax that year, I'm going to assume they do to get a true reflection of underlying profit.
So NPAT = 25*(1-.28)= $18mill
This gives me an eps of 2.62c
And a pe of 9.53 (at current share price of .25c)
For me a pe< 10 in a growth company is rare.
DISC: Holding
EPS 2.62 cents.
Thanks for working out the fundamentals.
I very much doubt such a growth company, with increasing capacity to pay higher dividends, will stay on a projected PE of under 10 for long.
All the "one offs" etc, will certainly strengthen the balance sheet.
Feel as though we are "well positioned."
Awesome noodles ; i really appreciate ( and i know many lurkers will too:)you doing this research and doing some figs; thanks JT.
QUOTE=noodles;503711]I agree Percy. It is a continuing pattern of upgrades at DPC. Some more colour is given in the RNZ interview. http://www.radionz.co.nz/national/pr...nings-guidance
But of more interest to me was the details about how the acquisition will be funded. From this I can calculate a normalised pe for FY16 (year ending 31 march 2016)
First some assumptions:
1. DPC get 100% ownership
2. All Convertable notes are converted
Additional Capital raised based on 100% ownership $38mill @25c per share. I included the convertible notes in my eps calculcation. I know this is not technically correct, but they will probably convert at a later date. In any, case, the number of shares on issue should reflect this.
The number of new shares issued = 48Mill/.25c= 152mill shares. Add this to the existing shares and we get 685mill shares
Now the profit. DPC stated here that NPBT for FY16 with 100% ownership is $25mil
https://www.nzx.com/companies/DPC/announcements/253161
While they won't pay full tax that year, I'm going to assume they do to get a true reflection of underlying profit.
So NPAT = 25*(1-.28)= $18mill
This gives me an eps of 2.62c
And a pe of 9.53 (at current share price of .25c)
For me a pe< 10 in a growth company is rare.
DISC: Holding[/QUOTE]