Excuse my ignorance.I could open the pdf file from the computer i as using. Here are some questions i would ask.
If they have $30m is cash reserves or equivilant then why did they need to borrow $20m. Is there something i missed? Did they sell a big asset or something?
It has a market cap of $17m. Something doesnt add up and smells funny. Whats going on? A fanastic bargin at todays prices or anothander finance company on the brink?
Meanwhile, the trend is still down.
Watching with interest.
Nita
quote Did they sell a big asset or something?
Yes they did, at the end last year they sold the building and leased back the floor(s) that has their head office in. Sold it for just over $30 Million from memory..slightly above book value. This is the reason why DPC has such a high NTA/share compared with other finance companies.
That $30M alone accounts for NTA/s = 30M/36.098M* = 83 cents/share
Wasn't part of the proceeds from the building sale then used to repay those $20m shareholder advances?
Not sure Steve....finance companies as you know are complex beasts and very hard to find accurate data.
Unless someone in the know can tell us, I guess we will have to wait until the end of May for the Full Year Result. I think the NTA was about $1.65/share at the last count wasn't it ?
DB details has it as $1.67
Using Total equity from the half year report it works out at $1.78. How much of this is realisable is anyones guess.
The NTA figure at full year result (end of May) will give us the amount of burn if any.
Agree with you that no one is sure of NTA. Just looked at Dorchester Finances Prospectus and in the last six months the current management lent over 70% of their capital to one party. This is astonishing in a time when the CEO says they are preserving cash. Assuming that this is a property loan I hope its not that big property development in Queenstown that some of the other finance companies are struggling with.
On the big seller a couple of weeks ago, rumour is that it was not Viking but ACC. Rumour is also that Viking have not been selling much in the last couple of months. Anyone know if that is true??
Having got ourselves into a debt-induced economic crisis, the only permanent way out is to reduce the debt – either directly by abolishing large slabs of it, or indirectly by inflating it away.
DPC advised the market on 29 Feb that they had $33m in cash or cash equivalents after repaying a $20m loan to related parties.
How much cash and what are actually the equivalents?. $1m cash and $29m AR's equal that as well but the total AR's may be bad debts. Not trying to be cynical but unless they are more transparent how can one be confident when imo there is a lack of disclosure.
If the assets of the coy are worth the stated values it may be in the best interests of shareholders to liquidate the coy.
Maybe best to sell off all the assets at book value, distribute the cash and leave the listed coy as a shell for backdoor listing opportunities.
Having got ourselves into a debt-induced economic crisis, the only permanent way out is to reduce the debt – either directly by abolishing large slabs of it, or indirectly by inflating it away.
Originally Posted by Steve
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