|Dowding & Mills
||EPS - Basic
||Market Cap (m)
|Electronic & Electrical Equipment
Real-Time news about Dowding & Mills (London Stock Exchange): 0 recent articles
|nonlottie: Isn't the function of activist shareholders to shake things up? - sometimes they end up selling the company - sometimes there's so little interest they accumulate even larger stakes and end up buying.
Lots of activists shareholders do this,: it's all within the rules of the game, and activists like these fulfill a useful role in unloved and unwanted companies.
For example they were instrumental in changing the previous board, the new guy Davies turned round the company and the share price has done really well since.
Shareholders employees and pensioners have all benefitted from this thanks to the activists.
When Davies and the board bought shares this year the price shot up and made sure the market took notice of the turnaround.
Otherwise someone may have been bidding say 12p or 13p or 14p.
Now they have had to think about 20p as an offer and who knows the share price may even go better if someone will counterbid and pay more than 20p.|
|red army: After attending the shareholders meeting yesterday I have decided to hold even though my gut instinct is that there will be a bid of 25p tabled in the near future - but don't ask me why.
The fact of the matter is that one institution together with the Man Group own approximately 40% ish of the company and it is basically their decision and not the Directors as they can only advise.
The company wishes to put back in to the Pension about £20mill and also reduce the loan by £10mill in the future, This is likely to take approximately 4 years and assumes that the current profits forecasted are achieved.
Clearly the share price will improve as this unfolds,providing the strategy goes according to plan.
Unfortunately I do not receive the accounts but would be grateful if someone could give an explanation as to freehold property ie where,size,value and mortgage etc?|
|lfdkmp: Angora7... enough to make one a conspiracy theorist!
You raise some interesting issues- personally I feel most answers are likely to be entering into the realms of speculation (we should all feel comfortable with that!). However, one or two additional points:
Is the "approach" which "may or may not lead to an offer" in any way to be considered a bid?
The RNS was issued ostensibly because of share price movements at that time (21/22 November). Share price movements prompted by bid speculation are usually accompanied by significant,non-typical trading, are they not? Buying volume on 21 Nov was 286K, and 228K on 22Nov when the RNS announcement was made. There are 154.1 million shares issued. Doesn't exactly look like a buying frenzy to me!!In fact the tick up in share price at the time could very plausibly be explained in terms of anticipation of the full year results within two or three days.
OK so what's my point? Seems to me that the directors could very easily not have gone public on the "approach", but they chose to do so. So I am also inclined to the view that there is another agenda here that we, the minnows, are not party to.|
|staffsstoker: The 20p is the "offer" price and the 17/18p the current market price because presumably the market is building in a risk factor in case the bid doesn't happen. If the market felt there was the chance of a higher bid the market price would be higher.
Can't therefore really see why the 17/18p or for that matter the 20p stops the share price rising above these levels; a higher price simply needs another interested buyer to want to pay more.
The 64 million dollar question is who this could be? Now they know the price it should be relatively simple with the results just out for any such person to make their move.
Perhaps the market having been through all this before 2 or 3 years ago is just sceptical when it comes to a bid going through, let alone a bidding war breaking out.
Only time will tell whether the market is right but it's certainly in play - more interesting is who could be the players in this industry?|
Understand where you're coming from with things improving under the new management, and the future starting to look better.
But if the major shareholders are happy to sell then it's difficult to see where the management can help us on this.
For example if JOH were to buy even a few shares and go over 30% they would have to bid and would likely control the company no matter whether the management want to carry on. Even more so if they had a few of the large holders accepting - and institutions look at their quarter by quarter plus annual performance and not historic cost like us - therefore the rise over the last year could be attractive for them even if it's not for some of us. And also even now many shareholders seem happy to sell at 17/18p.
Unless of course there are other buyers out there to pay more, the major shareholders are the only ones to decide the outcome at the 20p level. Unfortunately Management can do little more than us on the share price front|
|arcadiabridge: Do not know when you bought but the highest price over the last 5 years was 45p in Feb 2001, so it must have been a long time ago.
Nothing much can console you if you bought at £1 and watched the price sink to a low of 5.75p in July 2003.
We would all like to see the share price as high as possible, but it looks like the 20p on offer is the best that we will see.|
|arcadiabridge: A near 100% share price increase is fact and has nothing to do with "big up the current regime". Shareholders want to see income and growth, there is no income so lets be happy there has been growth.
The market is at 17.5-18p the bidder is at 20p, nobody else has entered the arena. Looks like 20p is the best that is on offer. Why is 20p a bitter pill ?
How would you get more than 20p for this company ?
What is your thinking behind 30p/share ?
Whoever owns DWM there is still a £26m pension deficit to fund which puts a big hole in the net asset value.
You say that "this is business and you either agree with whats happening or you dont" - all I can say is that the growth has out performed most shares and 20p look like a fair offer|
|mad4it: LONDON (AFX) - Dowding & Mills PLC said that in response to today's movement
in its share price, it confirms that the company has received an approach that
"may or may not" lead to an offer for the company at 20 pence per share.
It said there is no certainty that an offer will be forthcoming and that
relevant developments will be announced "as and when appropriate".
The offer is at 20p and the management are obviously considering it, or they would have released an RNS saying they'd rejected it out of hand!|
|adon: stay cool the market is always impatient, with variations in the share price designed to shake the nervous investors out. Remember Tudor said it would take a further 2 years to work the debt in more manageable levels at last results. This means the dividend is unlikely to be reinstated until 2007.
dont expect to much of the share either. 30 to 35p maximum unless they can increase the turnover back well above 100mill.
Comparing similar types of share e.g. intelek, whic has work out it's debt and is starting to work on turnover. this share is similarly undervalued, but the share is only 11.75p today.
we will have to wait on dowding to make slow progress, with dips in the share offering further buy opportunities. the problem is when do you buy in. the bottom has been called by the past share purchases by the directors at 12 to 13p, so thus is a good guide.
the will always be a need for this company in utility companies, so any recovery should be worth the wait, unless the company is taken over, which seems likely if the share price stays low.|
|lordgnome: Only a few of us left, Big Fella. This relentless drip, drip, drip, of the share price is not doing me any good. Usually goes down on no volume. The share price is dying of neglect. The market needs a reason to buy and there has been no news to provide one.|
Dowding & Mills share price data is direct from the London Stock Exchange