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hoop said -
I would blame DSE Product Managers and other DSE management long before I'd send a lynch mob towards the Private Equity Outfits who are just today's fashionable whipping boys...
Agree Hoop
A year ago they weren't in too bad a state post IPO - but then they the company spent zillions buying crap stock no body wanted to buy.
They ran out cash with big bills to pay - we know what that Evans eh and the nasty bankers wouldn't lend more.
Been a dog for years - was a turn around really on the cards post Woolworths hocking it off (or giving it away)?
Wonder what the real Dick Smith thinking?
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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 Originally Posted by winner69
Agree Hoop
A year ago they weren't in too bad a state post IPO - but then they the company spent zillions buying crap stock no body wanted to buy.
They ran out cash with big bills to pay - we know what that Evans eh and the nasty bankers wouldn't lend more.
Been a dog for years - was a turn around really on the cards post Woolworths hocking it off (or giving it away)?
Wonder what the real Dick Smith thinking?
The real Dick Smith said the business was a dog with no future (words to that effect) 5 mins after he was out the door waving the big cheque in the air.
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Receiver says - He said the retailer's New Zealand business was profitable and expected to be attractive to potential buyers.
http://www.nzherald.co.nz/business/n...ectid=11569422
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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Originally Posted by Stranger_Danger
You would have to be on crack to buy this stock.
Has been a classic private equity play - just look at the stores, empty shelves, stock levels reduced to an unsustainably low level. Got out of several categories in the stores I've visited, eg, DVD's, which is fine. But replaced with? Nothing?
Seem to be specialising in home brand stuff which I hear carries incredible margins, but how? And at what cost to the long term reputation?
Staff levels reduced, and knowledge lower than ever.
I just don't see where Dick Smiths fits in the market any more.
The PE guys have done a fantastic job dressing up this dog, and next to Freelancer.com, if they can sell it as "conservative tech", in this market, people may just buy it for "safety".
Just another tick in the box as to why I'm *slowly* (key word) reducing my exposure to equities.
^ One of the first posts in this thread circa the float in 2013 - Great call here Stranger Danger - Thought I'd give some credit where its due!
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Originally Posted by nextbigthing
I have only read one article on this which I can no longer find. It alluded to the fact staff/management at DSE were hamstrung by the PE boys as to what they could buy etc, which if true does make them liable.
Yep...fair enough..maybe PE was the rotten core..Wasn't aware of that.....but...hang on!! Anchorage Capital got out via the IPO in December 2013..that's two years ago...
The shareprice since the IPO has been stable until recently..suggesting the debt problem is the making from Management well after the Anchorage Exit?
I'm not defending the moral issues of PE outfits ..but..Are you suggesting that Anchorage Capital is still controlling product management after exiting 2 years ago??
From the August Annual Report the top 20 shareholders seem to be mostly nominee holdings
B. Top 20 Shareholders
The names of the 20 largest shareholders of ordinary shares are listed below:
Rank Name Number held ...%
1 J P MORGAN NOMINEES AUSTRALIA LIMITED 57,141,658 ..24.16%
2 NATIONAL NOMINEES LIMITED 36,176,951.. 15.30%
3 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 34,671,336.. 14.66%
4 CITICORP NOMINEES PTY LIMITED 15,994,889.. 6.76%
5 LMA INVESTMENTS PTY LIMITED 15,330,639.. 6.48%
6 RBC INVESTOR SERVICES AUSTRALIA NOMINEES PTY LIMITED 10,028,944.. 4.24%
7 BNP PARIBAS NOMS PTY LTD 9,323,303.. 3.94%
8 AMP LIFE LIMITED 6,356,031.. 2.69%
9 RBC INVESTOR SERVICES AUSTRALIA NOMINEES PTY LIMITED 4,221,670.. 1.78%
10 CITICORP NOMINEES PTY LIMITED 2,540,371.. 1.07%
11 MRS MARCELLA DAVIS 727,988.. 0.31%
12 MICHAEL POTTS 727,988.. 0.31%
13 NATIONAL NOMINEES LIMITED 721,723.. 0.31%
14 GWYNVILL TRADING PTY LIMITED 550,000.. 0.23%
15 JOHN SKELLERN 516,019.. 0.22%
16 TABWIT PTY LTD 500,000.. 0.21%
17 DMW CAPITAL PTY LTD 468,182.. 0.20%
18 JATOLI 2 PTY LTD 446,866.. 0.19%
19 MARIO COCCIOLONE 441,205.. 0.19%
20 NEIL MEROLA 438,498.. 0.19%
TOTAL 197,324,261.. 83.43
Balance of Register 39,187,103.. 16.57%
GRAND TOTAL 236,511,364.. 100%
Hmmm..if Anchorage did hamstrung Product Management in the past then I assume after the Anchorage exit the new DSE product management have now had 2 years to rectify those failings...or am I missing something???
It seems from the chart that the market become aware of DSE problems in August 2015....It seems thats well after the Anchorage exit..in which case are they still to blame for the recent demise?
Last edited by Hoop; 05-01-2016 at 02:17 PM.
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^ Hoop, "Anchorage sold its remaining 20 per cent last September", which basically exactly coincides with the sp falling off the cliff
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11569422
Is it possible that poor inventory decisions made 2 years ago are still on the books? Absolutely - see things like iphone 4 accessories etc - Back then there was probably a decent value attributed to them and they would have been selling alright, whereas now they are basically worthless - and that's just one product line
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Originally Posted by winner69
Hmm - year to June 15 DSE NZ made $1.3m on $179m of revenues ......and the interest bill was pretty small.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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Originally Posted by trackers
^ Hoop, "Anchorage sold its remaining 20 per cent last September", which basically exactly coincides with the sp falling off the cliff
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11569422
Is it possible that poor inventory decisions made 2 years ago are still on the books? Absolutely - see things like iphone 4 accessories etc - Back then there was probably a decent value attributed to them and they would have been selling alright, whereas now they are basically worthless - and that's just one product line
Appears Anchorage sold out in September 2014
http://stocknessmonster.com/news-ite...E=ASX&N=817943
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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Originally Posted by winner69
Too right.. Lazy NZ Herald! I did have a sneaky check on stockness of notices from around that time last year and there were so many I gave up
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Originally Posted by trackers
Too right.. Lazy NZ Herald! I did have a sneaky check on stockness of notices from around that time last year and there were so many I gave up
They sold out one month after saying they wouldn't because the results were good and they had confidence in the future .....ha ha - good old private equity trick eh
Exact words were
" We are writing to inform you that in light of the recent trading results and our positive view of the Company’s future prospects, we currently have no intention of selling at the prevailing market price.
Last edited by winner69; 05-01-2016 at 03:16 PM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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