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If there is no outcome soon, then the in fighting can be bad for business?
This stock shines so bright that it \"Bling Blings\"
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quote: Originally posted by MoSteph
If DPC is a shark, it's so a Pygmy Shark.
I think that DPC is the fish, with BK/RP/HG being the sharks...
Death will be reality, Life is just an illusion.
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quote: Originally posted by Steve
quote: Originally posted by MoSteph
If DPC is a shark, it's so a Pygmy Shark.
I think that DPC is the fish, with BK/RP/HG being the sharks...
Agreed.
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Game-on!What makes you think anything really positive is going to happen,some shareholdings will change,but it will be a long time before Brent King,if he gets influence on the board,will be able to implement changes,and a while before they come through to the bottom line.I'm sick of this company.I was a very successful shareholder for a number of years with this baby,but i think someone needs to take it out,to get it off the boards.
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Member
I believe the three main players motivations with DPC are as follows.
Bridgecorp want a backdoor listing on the NZX but also need the DPC book to balance the risk on their own finance book which is geared around some highly leveraged property deals. Its limited for now to a 19.9% stake because it doesn't have the funds to do a full takeover and execute its plan. It is over $1 per share out of pocket on its purchase price.
Hugh Green is a professional investor he sees a solid company under valued and opportunity to make a solid gain. He's limited to 19.9% because he wants to maximise his investment exposure but not trigger a takeover. I must add Green is no fool and his skin in this game gives me confidence to remain. Most importantly he isn't a long term investor and as such he'll want to realise his investment sometime, hopefully soon. Certainly I can't imagine he be happy with the way DPC's share price has wallowed in recent times.
King and his vehicle Viking are akin to Hugh Green. King having sold his stake at somewhere between $3.30 and $4.00 he sees value in DPC at current levels and is probably an ideal long term owner. Certainly he knows the business extremely well and is undeterred by the one off provisions announced - they are just provisions on the off chance the loans default. More so the news has created an opportunity to establish his 10% blocking stake.
A fourth, wild card, party could be St Laurence with their defacto stake in DPC via short term colateral they hold over Bridgecorps shares in DPC. I think the loan that relates to this expires sometime in March and I think this could be the catalyst for some chanages.
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Well articulated Prophet
I see the DPC play going something like this:
1. Bridgecorp/St Laurence will want out, RP hasn't achieved what he wanted, it's & time to admit defeat & move on & put his money & resources elsewhere. They don't have the funds to mount a takeover.
2. Hugh Green as you say, isn't in this for the long haul, if he can't instigate the changes to increase his return he will want out, but will wait for the right price.
3. BK obviously wants back in & knows there is value in DPC that the current management can't unlock. Thru his Viking Capital investment vehicle they may be able to raise the finance to mount a takeover, however i suspect he will accumulate up to the 19.99% mark & wait ....
I would be happy with HG & BK working together with a combined 40% control & that would entice me to buy into DPC.
Until that happens it's a waiting game (just like RBC) & in the short term it's likely going nowhere!
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Member
Shasta,
Looks as if you were spot on about BK and Viking,
>>Viking looking to raise $20m
Email this storyPrint this story 5:00AM Saturday February 24, 2007
By Liam Dann
Brent King's investment company, Viking Capital - which raised just $15 million in its float last year - will hold a special meeting next month seeking shareholder approval for a bond issue to raise up to $20 million of capital.
King would not say specifically where the new capital would be spent but indicated there was no shortage of opportunities in the market.
"Every day we are getting approached to do different things. It's nice to have the phone ringing," he said. "It is a nice market for us right now."
A $20 million capital raising would be a significant step for the investment company, which raised just $15 million when it floated on the NZX alternative market last June.<<
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Member
quote: Originally posted by KJ
Also quoting from the AGM dated 23/8/06:
"already we are reaping the benefits with year to date results tracking well ahead of last year"....(Chairman)
"we are tracking towards a profit for 2007yr ahead of last yr in line with our goal of achieving a 20% return on shareholders funds"
...(new CEO)
These comments were made just before the H/Y results.Why would you want to invest?
In a LT downtrend with profit falling & management making the above statements.
A 20% return on shareholders funds equals NPAT for 2007 of $10.8m-don't think so!
Results have been poor over the last few yrs regardless of who was in charge compared with other finance coys.Hard to see any change.
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