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  1. #21
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    The writedown due to bad debts shouldn't have been a surprise...

    Profit cut for finance group
    Dorchester Pacific says its annual profit will fall more than 50 per cent, after making bad-debt provisions of $4.65 million.

    Yesterday's announcement caused the finance company's share price to fall 10.2 per cent to an intra-day low of 212, before closing off 21c at 215.

    Dorchester said annual earnings ending March 31 were likely to be $3m to $4m, against $8.15m in 2006.
    Death will be reality, Life is just an illusion.

  2. #22
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    In the 12+ years that BK ran Dorchester as a listed company there was NEVER a downturn like this nor any bad debts of this scale. Only steady and consistent growth in profits, dividends and share price.

    So much for the new regime! I'm v happy that I got out soon after the upheaval. Behind the blather, what have the new directors and management achieved for shareholders? 2/3rds of 3/5ths of FA.

  3. #23
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    Wasn't the last financial year affected by "one - off" write downs etc, & that they had cleared all these in anticipation of adopting the new IFRS regime?

    There life insurance division is a real labyrinth to digest & work out, although i do believe there is money in insurance (AMP, TWR, PMN have all recovered during 2006). I can even see DPC selling this division off as part of a large clean out at some point & at the "right" price.

    This company deseparately needs to bite the bullet & disclosure all remaining provisions, write downs, bad debts etc & take the hit, & even if it results in a loss for the full year, at least end the "one off" surprises that the market dos not respond well to.

    DPC needs direction & a new strategy & IMO that means to start sorting this mexican stand off, having 3 separate blocking stakes is holding DPC back from having a $3 SP.

    To enable someone to extract full value out of DPC (& that shrewd Brent King knows it's there), Bridgecorp probably needs to exit, & have Hugh Green stay with the 19.99% stake, & perhaps VIK do what KFL do so well & retain just a 10.01% stake so they benefit from any takeover, yet retain a blocking stake & perhaps get Brent King back on the board to ensure Hugh Green is looking after all shareholders.

    Disc: Nil, but have had on watch for a while & watching the charts, OBV, SSH notices etc etc

  4. #24
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    A cynic, myself included, would say that this is a perfect opportunity for BK to be buying some more shares at 2.15 :P

    In fact this announcement couldnt have come at a better time!!!!

  5. #25
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    True Blackcap

    Its a bit of a contrarian play at present as the charts are awful to say the least, but much like RBC the longer it take to sort out the worse things seem to get!

    I need funds for ASX committments, else i'd be tempted to grab a small parcel myself.

  6. #26
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    Personally, I wouldn't touch DPC again - not for quite a while anyway. Sure, there could be some volatility for a while, with various parties involved, each with their own agenda. But I'm prepared to pass up the possibility of any quick gain because D doesn't meet my criteria for throwing money at - ie for sound, well managed, progressive companies that have good governance and a clear growth path. D was once like that. Not any more.

  7. #27
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    Should be cheaper in the future.
    Consider
    1. During the most favourable period of economic and credit growth in recent history, DPC have been unable to post decent gains.
    2. What is the company's policy on provisioning do they only provision when they are sure to take a hit or is there a good chance that the provisions will be written back? If the former is the case they probably have a lot of dodgy loans on there books that will need to be provisioned for in the not too distant future.
    3. The benign credit environment will not continue forever, its hard for lenders of last resort to grow their assets without taking on too much risk as the banks are pretty much lending on anything reasonably safe. When the climate turns there will be a lot more "provisioning".
    4. Mr King has stated that he wants to pick up bargains in the finance industry. IMO he would probably make a move if DPC has a few big losses and started to run low on capital [something thta Mr King has plenty of at the moment]. I'm pretty sure this will happen within the next 2 years.

    Cheers

  8. #28
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    Nearly 500k (i.e $1M) traded in DPC today. My guess is that King picked up most of them and a SSH noitce should confirm that tomorrow.

    If he did then he has achieved a blocking stake of around 10.6% and he's in a position to force the outcome of the inevitable showdown between Bridgecorp and Hugh Green potentially triggered by the expiry of Bridgecorps loan from St Laurence come eo March.

    Interesting times. Certainly not a time to sell for those already in the game.
    Prophet

  9. #29
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    I have always stayed well clear of this one. I prefer to avoid shark-infested waters when going fishing.

  10. #30
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    quote:Originally posted by COLIN

    I have always stayed well clear of this one. I prefer to avoid shark-infested waters when going fishing.
    I always thought that sharks followed the best fishing spots?
    Death will be reality, Life is just an illusion.

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