Dawson Share Discussion Threads

[protean] 03/6/2011 16:18

Strong towards the close

[cockneyrebel] 03/6/2011 16:10

someone paid a 0.25p premium for 100k today too.

Definitely looks like Shroders are no longer selling imo.

CR

[mister md] 03/6/2011 15:58

this has been well worth the wait !

[davydoo] 03/6/2011 15:52

Suddenly that buy at 12.25p this morning doesn't look so extravagant when you can sell at 12.2p now

[cockneyrebel] 03/6/2011 15:49

And breaking out through the 2009 highs :-)

CR

[cockneyrebel] 03/6/2011 15:49

Can't get 25K online so looks like Schroder are not selling now, or they've sold the lot perhaps?

CR

[davydoo] 03/6/2011 15:46

Can anyone see details of today's trades on PLUS? 311k traded but I can't see any detail.

[markt] 03/6/2011 14:55

What is the contingent liability of 3.7M for ?..(down from 5.6M in 2010).and is likely to be needed...or could it be wiped out

Anyone know ?

I am interested since 3.7M is approx. 50% of the cap. value of Dawson...
so it is significant item...

=====

Do we know what company made the approach to acquire Dawson ?

===

I would assume that Dawson would be a good acquisition for various publishers such as Pearson......they could increase the sales and profits of some of their books to libraries...and perhaps the market could be widened to be not just libraries...
imo Pearson could see a quick pay back....they have a lot of education books they
and a global company such as Pearson could apply Dawsonera ebooks system globally which is something that Dawson would struggle to do I think due to its size...or would take long time or too long...
Pearson has a big market since it now operates schools and colleges.....so it could use ebooks system to sell its own books to students....
and if it owned the system then it does not lose a % to middleman...

And if a big global company was interested in Dawson...then they would not care what the price was.....Pearson for example makes around 700-800M/year profit. The key requirements for Pearson are to be in the right place at a global level....and be close to the front technically......it can not try to offer complete solutions (and obtain Govt. co-operation in say India) if its offer is out of date....

I think that for EDI the take out price was around double....and that cost them around 200M I think.

[sportbilly1976] 03/6/2011 14:19

Looking at the profitability of the books section - £800k from revenue of £22.8mln is about 3.5%

However, this includes the printed book market, which will be on thin margins and revenues did fall by 5% in the UK, although this was more than offset by a 15% increase in export sales and 56% growth in ebooks....andthe outlook does look promising -

" The turnaround of the Books business's fortunes is well underway in a great many respects and we still have a number of opportunities ahead of us. "

I guess the actual profitability on just the ebooks will be confidential info.

[sportbilly1976] 03/6/2011 14:10

markt,

The purchase of the remaining 50% in Phantom Media on 17.01.11 is shown in note 8.

8. Acquisition of Phantom Media Limited

On 17th January 2011, the group exercised its option to purchase the remaining 50% of shares in Phantom Media Limited. The acquisition had the following effect on the group's assets and liabilities on that date


Pre-acquisition Fair Recognised
carrying Value values on
amounts Adjustments acquisition
GBPm GBPm GBPm
Investment in equity
accounted investees - 0.2 0.2
Non-current trade
receivables 0.3 - 0.3
Current trade receivables 0.5 - 0.5
Cash and cash equivalents 0.1 - 0.1
Trade and other payables (0.7) - (0.7)
Net identifiable assets
and liabilities 0.2 0.2 0.4
---------------- ------------
Carrying amount of
investment 0.4
Additional consideration
on acquisition of
remaining 50% -
Cash acquired (0.1)
Net cash inflow on
acquisition of remaining
50% (0.1)
------------

The consideration for acquiring the remaining 50% is shown as £nil.

[cockneyrebel] 03/6/2011 13:20

Testing the 2009 highs here, through the 12.5p level and next resistance is 27p.

CR

[markt] 03/6/2011 13:06

anyone know
what is the price to buy the remaining 50% of Phantom Media Ltd ?
and anyone know much about Phantom, turnover, technology etc

What is the contingent liability of 3.7M for ?..(down from 5.6M in 2010).and is likely to be needed...or could it be wiped out

and any views on the profitability of ebooks section ?

ebooks....looks like DWN has good possibilities imo to sell to airline travellers and train travellers due to their existing supply contracts...any opinions ?

one would assume that the Techinvest buy was related to the Phantom Media technology and ebooks parts (56% growth) and not the paper books part...

[bigbigdave] 03/6/2011 12:12

And if they leave the bid any longer DWN will have put out another stonking announcement driving the price even higher.

[sportbilly1976] 03/6/2011 12:10

Given their cash position, and the prospects for growth for this year alone - on a pe of 10 the Co is worth 18-20p a share.

Any bid has to offer a premium to that...so I'd say 25p is a realistic figure the Bod would require to seriously consider.

[jailbird] 03/6/2011 11:31

yes i agree with that,

however even at 7.7p, i think the 12p would not have been accepted myself, the results proved that the Co. is in recovery, and looking forward, it is looking stronger.
20p minimum i say..that is now..

[davydoo] 03/6/2011 11:25

Interesting point CR, and makes you wonder whether the bidder(s) should have acted quicker? the share price went from 5p to 9p on the bid news, then drifted back down to 7.5p, if theyd have come in at that point with a 12p bid, pre results, that deal might have got done. Although I guess a lot depends ont he BoD and their advisers, as to whether they would have recommended that bid, as they would have already known about the strong trading performance. At 12p already, youre right theyre going to have to bid a premium from here.

[erniemadoff] 03/6/2011 11:24

I agree, is there any regulation on how long the bid process remains active?

[cockneyrebel] 03/6/2011 11:14

Is it just me that has blotted any bid out of my mind?

The valuation here has got no bid premium in it whatsover imo. If they came out and said there's no bid would the shares actually fall? I doubt it, and if it did it would be bought up like a shot imo, me included.

On the other hand if there is a bid it's gonna have to be way north of this to have a prayer imo.

CR

[davydoo] 03/6/2011 10:52

im amazed they had to pay that at that time, just shows that without the schroders dump truck backing up everyday, the stock just isnt there

[cockneyrebel] 03/6/2011 10:46

yep, someone had to stump up there :-)

CR

[jailbird] 03/6/2011 10:43

81k delayed buy from this morning .
looks like the asking was 11.5p at the time, and buyer paid 12.25p!

[sportbilly1976] 03/6/2011 09:41

davy,

you're quick off the mark this am :)

[bigbigdave] 03/6/2011 09:36

Half asleep this morning SB zzzzzzzz ,the sight of this has woken me up 8-)

[sportbilly1976] 03/6/2011 09:18

being bought up now, and Schroders seem to have stiopped selling...not quite a perfect storm, but certainly a very nice one :-)

[jailbird] 02/6/2011 12:19

yep, added 25k this morning..was hoping for a dip today