Debts.Co.Uk Share Discussion Threads

[ollie6] 13/1/2007 10:40

a bit of a late jump for DETS,i expect this is because of the interest rate hike.do any of my distinguished fellow panelists think there will be a further rise for the MLR in 2007-i think there could be 2 more.

[eoc74] 12/1/2007 16:54

Those savings accounts are a waste of time. You can only put in £250 per month. So at the end of the year, you get 6% of 250 plus 6x(11/12)% of 250 plus 6x(10/12)% of 250 etc...MINUS 40% for Gordon Brown and you end up with a grand total of about £120 on an investment of £3,000, off the top of my head. I suspect I would get more if I bought 100 lottery tickets.

[nobel2005] 12/1/2007 16:14

yes- but it is paying 6% overall isn't it?

[twentyoneeleven] 12/1/2007 16:02

Savings schemes like that are extremely misleading Nobel! You need to read the small print ... you can only save a maximum of £250 a month and if you withdraw any of it before the end of the 12 months, you don't get the higher interest rate ... which only really works out to a little more then 6% anyway when you do the sums! Savers have been very hard done by in the UK over the last decade or so with the low interest rates we've had, so in a way it's hardly surprising many people spend all (and more!) of their cash and get into debt in the first place! IMHO the only way is up for this one and others in this sector!

[nobel2005] 12/1/2007 15:51

Try the new Barclays regular saver, I think it pays 12

[twentyoneeleven] 12/1/2007 15:18

If anybody was that worried about risk, perhaps they wouldn't be investing in stocks and shares in the first place? I agree that sentiment has driven down this whole sector recently, and the others you mention have been quicker to recover, but IMO this one will do the same in time. As an aside, I'd be interested to know where you can get 6% interest on any savings in this country at the moment?

[nobel2005] 12/1/2007 14:58

No information or communication from a company in this area is not a positive sign.Any cash could be put to better use in a deposit account.At least you would get 6% guaranteed return with no risk. I would rather invest in DFD or DEEBT than this. I may be wrong, but why take the risk

[eoc74] 12/1/2007 14:28

If the company were not making profits or had a huge debt, I would agree Nobel. However, they are making money and will continue to do so if what they tell us is true. The exact same thing happened to the chart of DEBT and one day it dropped so low that there was a huge surge out of its downtrend. I expect similar here.

[twentyoneeleven] 12/1/2007 13:17

Why Nobel? Were you holding the paper upside down when looking at the rate rise graph? ;-)

[vapourtrail] 12/1/2007 13:07

Absolutely EOC74. This chart is so bad it's not logical, this strikes me as a sit tight and wait scenario, the fundamentals are strong with dets also venturing into the commercial IVA sector, something which gives the company a bit of an edge IMHO. The reason for the secrecy could be that this company is expanding into Europe particuluarly Germany to deal with rising (but as yet relatively unreported debt).

[eoc74] 12/1/2007 12:50

The chart looks dreadful here! We have to break out of this trend! Im sure it will happen sooner or later as it did with DEBT.

[twentyoneeleven] 12/1/2007 10:41

The start of the long road back towards £2 and above? After yesterday's (unexpected!?!)rate rise, the third in six months, there's been a lot more media coverage about the state of many people's debt levels ... both current and prospective. With talk of 'at least' one more rate rise a real possibility in the coming months, and the number of IVAs being taken out increasing all the time, business has to look good for companies in this sector? All IMHO of course! I do very much agree with Blindfaith2 about the lack of communication to holders though!

[blindfaith2] 11/1/2007 17:00

I agree with NOBEL, Dets don't seem to have the knack of cheering pi's as they go, whereas DFD are almost over zealous to release news but at least it keeps their name in the news.

Dets need to wise up and treat shareholders as their friends and keep them fully informed even if it means regular rns's stating nothing in particular but at least letting everyone that they are still there. This constant drift of a penny or two is demoralising to say the very least when there's no reason for it, well I hope that's the case.

[twentyoneeleven] 11/1/2007 12:26

This might help the share price of many in this sector?...

[nobel2005] 11/1/2007 12:08

dear vapourtrail, almost all movement in this iva company sub sector is now driven by sentiment.sentiment is poor snd public perception is poor about these companies.DETS though has an added problem, very secretive and almost non-existent investoe relations and news flow.I suspect the management have no idea how to deal with the world as a public listed entity, compare that with DFD for instance.They are probably just IP boys who've floated a good business.unfortunately perception is reality,it make take long time before this one takes off regardless of fundamentals.

[vapourtrail] 11/1/2007 11:51

If this share keeps dropping by approximately 0.01p/day then by about mid-june it should reach zero! This is nonesensical, why are we suffering a drop like this when the business model is sound & the company has a clear strategy for expansion & has increased its workforce in order to cope with demand?

[twentyoneeleven] 07/1/2007 09:26

Do you have a link for the article, Ollie, or can you tell us the general gist of it? Thanks!

Edit: Is this the one you mean?...



Solving insolvency

Having wised up to fact that personal bankruptcies are not going away, the big banks are now trying to put in place a structure which they hope will mitigate their losses.

On Monday, HBOS will follow in HSBC's footsteps and become the second financial giant to use the Insolvency Exchange to analyse cases where customers are seeking to restructure their debts. The other major banks may soon do the same.

The Insolvency Exchange, set up by debt management firm TDX, aims to ensure proper scrutiny of individuals who get into financial strife. In return for a commission, it uses high-tech programs designed to ensure that creditors get back as much money as possible if someone embarks on an Individual Voluntary Arrangement (IVA).

The industry is estimated to have lost around £6bn from insolvencies in 2006, with the number of IVAs surging to 100,000. This year, it could hit 140,000 and the rising trend may well continue as a growing number of consumers struggle with their loans.

Banks typically get around 30pc to 40pc of their money back through a five-year IVA deal, which is better than if someone declares themselves fully bankrupt.

Though with such big sums at stake, it is hardly surprising that they need the need to manage the process better.

Most debt recovery is done inhouse by the banks, who prefer to deal direct with borrowers. But they are realising that IVAs involve a delicate balancing act to ensure consumers do not walk away from their responsibilities completely.

Bulk deals can be agreed with specialists, keeping administration costs to a minimum. If middlemen adhere to a common standard it could benefit all.

[ollie6] 05/1/2007 17:56

there is a very interesting article concerning ivas by lucy farndon the deputy city editor in todays mail

[eoc74] 05/1/2007 11:09

I recently got forced to sell out of a position similar to this which just kept dropping and dropping despite high hopes of management. Despite all kinds of promises etc. It was small drops but steadily day by day, like this. The result was that I was down 60% and I sold out. The big difference was, that company was sitting on huge debt and making no profits.

This company has good fundamentals and growing profit. It will turn around eventually, be it from growth or from a takeover. There is no real reason to worry here, yet anyway.

[twentyoneeleven] 04/1/2007 10:04

I agree with both of you. IMHO, now that the holiday season has come to a close, there are going to be a lot more media articles abot the amount of debt many people in the UK have got themselves into (it wouldn't have been good to report on these things in the run up to Christmas when the retailers always expect (need!) business to be good, now would it?). With two rate rises from the second half of last year still working their way through the system, and another predicted for Q1 2007, I can see this whole sector taking off again in the next couple of months!

[vapourtrail] 04/1/2007 09:57

I agree! Sooner or later this has to rise.Not too worried at the moment since there has been a fall in DEBT also.There has to be some offshoot business whereby those in financial difficulties would prefer to take out an IVA rather than declare themselves bankrupt & lose everything. The Christmas overspend should force some out of the woodwork.

[eoc74] 04/1/2007 08:59

Does anybody else see this low as a buying opportunity? If what theyre telling us is correct, this is undervalued!

[twentyoneeleven] 04/1/2007 07:18

The Times
January 03, 2007

10,000 people a month will go insolvent as debt soars
Gabriel Rozenberg, Economics Reporter

More than 10,000 people a month are expected to declare themselves insolvent this year as a culture of unsustainable debt grows among the "buy now, pay never" generation.

Acountancy experts are forecasting a record number of personal insolvencies in the first three months, after a year in which bankruptcies and similar arrangements soared above the 100,000 mark for the first time.

Financial advisers say that the figures point to the emergence of a generation who take debt for granted and for whom bankruptcy has lost its stigma.

The use of individual voluntary agreements (IVAs), a popular alternative to bankruptcy that protects debtors' homes from automatic repossession, has grown steadily over the past two years and is expected to soar this year.

Continued...

[eoc74] 03/1/2007 09:09

Not sure what to do here. Certainly do see this being taken over at some stage, but at what price? Reluctant to sell as DEBT also fell while all else was going up only to recover 30% in a couple of weeks. The share price falling does not mean the company is in trouble as DEBT proves. Chart does look terrible though!

How many IVAs per month are DETS doing?