TRA - Turners Automotive Group [previously TNR - Turners Limited]

[Enumerate]

They didn't, because these things are worthless and the only reason Macquarie keep them going is their Management Fee.

You are right in your observations about one thing - the fact that the trust bears the "Macquarie" name means that there is a "little bit of magic" sprinkled on the units ...

- the fact that the fund was saved by the refinancing of the leverage deal is an example of this "magic"

The units are far from valueless. They are built on good corporate loans. Yes, it is a leverage model that amplifies the yield, or loss - but the fact remains that NONE of the underlying loans have defaulted.

These are good loans - having to be sold into a bad market due to the mark to market liquidity terms of the prior leverage agreement. Now, part of that financing model is no longer mark to market - there will be no necessity to sell good loans before maturity.

I have looked at DPC.NZX as a "vulture" play.

In my personal view MFNHA.ASX or FTNFA.NZX (if you can get them) offer substantially more reward for significantly less risk.

If you have any mates with FTNFA's - who consider them worthless - I'd be happy to take 'em off their hands for a modest price ...

In my view, "the smartest guys in the room" now work for me. I've got them at work manufacturing a millionaire ... in their factory.

[COLIN]

You are right in your observations about one thing - the fact that the trust bears the "Macquarie" name means that there is a "little bit of magic" sprinkled on the units ...

- the fact that the fund was saved by the refinancing of the leverage deal is an example of this "magic"

The units are far from valueless. They are built on good corporate loans. Yes, it is a leverage model that amplifies the yield, or loss - but the fact remains that NONE of the underlying loans have defaulted.

These are good loans - having to be sold into a bad market due to the mark to market liquidity terms of the prior leverage agreement. Now, part of that financing model is no longer mark to market - there will be no necessity to sell good loans before maturity.

I have looked at DPC.NZX as a "vulture" play.

In my personal view MFNHA.ASX or FTNFA.NZX (if you can get them) offer substantially more reward for significantly less risk.

If you have any mates with FTNFA's - who consider them worthless - I'd be happy to take 'em off their hands for a modest price ...

In my view, "the smartest guys in the room" now work for me. I've got them at work manufacturing a millionaire ... in their factory.

Enumerate: I'm with you - you're on the button, on this one. An opportunity well spotted. I picked up a few FTNFA at just 10 cents a few weeks ago (or was it 10.5c) and there are a couple of current bidders at 20/21c but sellers are not being tempted (apart from some optimist at 70c).
NAV (latest 40c) will climb steadily from here, risk has been largely purged, and my 10 cents will show a return that will be hard to beat - apart from energy specs.
I, too, would like some more - provided the price is "right" - but I don't fancy my chances with you also hot on the trail!
Happy hunting.

[Enumerate]

I picked up a few FTNFA at just 10 cents a few weeks ago (or was it 10.5c) and there are a couple of current bidders at 20/21c but sellers are not being tempted (apart from some optimist at 70c).

Well done! Clearly, you picked the absolute bottom. I think you may end up in a position to collect the value of your capital, in interest payments, per year!

[Enumerate]

A "Vulture" play? ... Methinks even vultures would be wary of this rancid bit of meat.

I think some may be attracted to the recovery potential. I cannot help thinking that DPC is being characterised as the finest tenderised "road kill" whereas St Lawrence is being puffed and plumped as the white knight.

[BlackPeter]

I think some may be attracted to the recovery potential. I cannot help thinking that DPC is being characterised as the finest tenderised "road kill" whereas St Lawrence is being puffed and plumped as the white knight.

I agree - its sort of strange to see how this share is talked down. Admittedly - neither the last CEO nor the current board seemed to have had a good feeling for timing (or judgement), but DPC still have an asset backing of $1,12 and Walker did walk (excuse the pun).

DPC actually does own 25% of St Laurence. Assuming that St Laurence is in the meantime a significant part of their assets - and doing well (considering other finance companies) - how come that the shares are traded with such a huge discount? Just bought some more - DYOR.

[moimoi]

I agree - its sort of strange to see how this share is talked down. Admittedly - neither the last CEO nor the current board seemed to have had a good feeling for timing (or judgement), but DPC still have an asset backing of $1,12 and Walker did walk (excuse the pun).

DPC actually does own 25% of St Laurence. Assuming that St Laurence is in the meantime a significant part of their assets - and doing well (considering other finance companies) - how come that the shares are traded with such a huge discount? Just bought some more - DYOR.

BP...a quick glance at last weeks announcement provides clues...

They have burned over $2mill cash in a month. (now 28.2mill at 30/5/08)

Keep that up for 10 months and what do you have.?

They are currently enjoying a reinvestment rate of 20%!!.

Effectively mum n dad debenture holders are frantically(and rightly so) demanding their funds back at maturity instead of rolling them over.

A number of receivers of finance companies have recently publicly indicated that recoveries on property related loans are exceptionally unlikely to meet expectations.

It is also awfully difficult to finance anything with a hint of "development" currently due to the "credit crunch". So if you can't sell it, and you can't refinance it, then maybe, just maybe, ones receivables due to be collected within the next year of $183mill might look a little shaky.??

With debenture maturities due within the next year of $156mill (of which as stated only 20% are being renewed) and you have a slightly ill looking puppy...

not for me bro..

cheers
Moi

[Dr_Who]

I am still scratching my head why Brynes (accounting background) has been buying DPC shares and recently accepted the position to run the company?

I dont think someone of his background would take a position like this if he knows it is a sinking ship.

[Steve]

BP...a quick glance at last weeks announcement provides clues...

They have burned over $2mill cash in a month. (now 28.2mill at 30/5/08)

Keep that up for 10 months and what do you have.?

They are currently enjoying a reinvestment rate of 20%!!.

Effectively mum n dad debenture holders are frantically(and rightly so) demanding their funds back at maturity instead of rolling them over.

A number of receivers of finance companies have recently publicly indicated that recoveries on property related loans are exceptionally unlikely to meet expectations.

It is also awfully difficult to finance anything with a hint of "development" currently due to the "credit crunch". So if you can't sell it, and you can't refinance it, then maybe, just maybe, ones receivables due to be collected within the next year of $183mill might look a little shaky.??

With debenture maturities due within the next year of $156mill (of which as stated only 20% are being renewed) and you have a slightly ill looking puppy...

not for me bro..

cheers
Moi

At this point, taking a punt on DPC is pretty much taking a spreculative punt on those borrowers and their ability to repay.

There is not much of a margin for default once you take into account the overheads...

[BlackPeter]

todays announcement to NZX:
------
REL: 0934 HRS Dorchester Pacific Limited

MEETING: DPC: Annual meeting 2008 and director nominations

Dorchester Pacific Limited will be holding its Annual Shareholders Meeting in
the Guineas 1 Room, Ellerslie Event Centre, 80-100 Ascot Avenue, Greenlane,
Auckland on Thursday 21 August 2008 commencing at 2pm.

For the purposes of NZX Listing Rule 3.3.2, Dorchester advises that the
closing date for director nominations is Monday 30 June 2008. All nominations must be received by 4.00 pm on the closing date.

Nominations may only be made by a shareholder entitled to attend and vote at the Annual Meeting, and must be accompanied by the consent in writing of the nominated person.
----- (end of announcement) -----

Looking for a director with foresight, good judgement and most important with the shareholders interest in mind. Anybody with experience out there who wants to take on the challenge? Happy to support any reasonable contender ...

[Nitaa]

I have been kept quite about dpc of late...anyway... when does the next announcement of bad news arrive or will shareholders have to wait until the agm?