hoop. i tend to agree. next year writedowns could be somewhat significant
hoop. i tend to agree. next year writedowns could be somewhat significant
DPC might also be factoring in expected gains from the sale of the properties they have mentioned in announcements - this would add to profit, allowing them to report higher earnings.
Try figure - VIK was buying/topping up DPC at over $2.00 right up to March this year and now selling out at $1.12. Desparate stuff - money to keep other investments afloat?
Guess the market is waking up to the fact that VIK has made some dreadful investments. ICP Bio is one and VIK was busy pumping in money via loans to find that it was broke and needed recapitalisation.
No idea!!...not in my investment theories books :D :D
I don't think I would class DPC as a dog but it seems Mr Market has.
If it is a dog, it has a lot less fleas than BIO. DPC will survive, not sure about BIO survival chances, however.
BK is or was reputed to be an astute business person...not sure what he is up to at the moment, but he seems to have dug himself I bit of a hole. I would not write off BK yet, he has the ability to bounce back. I still regard him as a possible menace with DPC, but less so now.
Have you noticed....all investors in DPC have been stung in the last few years...talk about a poison chalice
"Have you noticed....all investors in DPC have been stung in the last few years...talk about a poison chalice"
Except for the largest insider BKburger who sold the poisoned wine as champagne at circa $2.80 to Rodney who is exceptional at two things: losing other peoples money and drinking champagne they have bought him
on face value DPC looks a good investment to buy shares into. what their real position is a little hard to fathom therefore making it a huge gamble to buy into. another issue is that people investing into fixed deposits or other investments where they are only getting 1 or 2% higher than the banks are now getting cold feet.
imo dpc sp demise started to turn to custard around the time that bk and rp were doing some back room deals.
with regards to vik i think that he has become too desperate to chase the so called easy buck. set up his vik with stuff all. no direction, no forcasting. to me bk lost his soul when he started to deal with rp.
all said and dome dpc still looks the most solid of finance companies but i don't have the fanny to buy.. at least not in the next 12 months.
discl. brought this stock at $2.82 and sold for $2.50
VIK holds BIO & DPC shares as it's only sellable assets. I am assuming that since BIO is facing a huge funding problem, that VIK loans to BIO are probably unrecoverable unless BIO returns becomes profitable. Clearly it won't or it would have by now. This means that VIK can either sell DPC shares or go to the market for more money. Now is a terrible time to go to the market and admit a cash flow crunch for VIK so it would seem their only option is to keep on selling DPC. I am also assuming no-one would want to buy the loss making BIO assets.
IS five star finance connected to dpc?
It's ok, it's a 'strategic' move. Yeah, right!
Dorchester pulls rug from subsidiary
New 1:01PM Friday August 31, 2007
Dorchester Pacific Finance has decided to stop funding its subsidiary Senate Finance Limited, which offers loans on used vehicles
With the recent collapse of seven finance companies, Dorchester is reassuring investors it is not in trouble.
Chief Executive Andrew Walker says the company is in negotiations to dispose of the Senate Finance loan book.
He says with finance companies falling over he is not worried about the timing of the move, which he says is a strategic one.
He says most people understand the decision has not been taken because the business is in trouble.
How much will it cost DPC to write off senate finance?
As at 31 Mar 06 Dorcherster Finance Limited had made $134m in related party loans to Senate Finance and its subsidiaries.
Don't know what the current balance [2007 accounts not available] is but I'm guessing they haven't made much of a dent in the repayments...
At the 2006 AGM the cjhairman said they were "changing their lending mix" and showed a before and after pie chart that showed that their lending to the motor vehicle sector had decreased and the lending mix was "safer". It turned out that as loans expired they were not re-lent. The new chairman said this was a strategic move. What a pity a year later they are still exposed.
The other gem was the unvieling of a new corporate symbol. Drum roll....... A backward D
Fantastic!!!
These guys are terrible at spin. The whole management need removing from their "jobs for boys club"