Daejan Share Discussion Threads

[bolador] 10/3/2010 11:00

Skyship,

Daejan might be a rip off from your point of view but how about thinking of it as a pot of gold surrounded by a barbed wire fence. It would be nice to think there was a way this fence could be clipped.
Do you know the total percentage of stock held by the board and family ?

[skyship] 10/3/2010 09:07

bloodsports said: "I agree-solid company, have been well managed and clearly aim to be around for next fifty years, if they and me still here sure we will have done ok!"

The point about this operation is that if you are around in 50yrs time you will still be sitting on a 50% NAV discount; and just finally perhaps waking up to the fact that the compound interest on the dividends you should have received would have made you shedloads!

DJAN is a total rip-off. The directors pay themselves enormous salaries for managing their own property portfolio, but pay very small dividends as why should they give THEIR money away to minority shareholders.

I am so pleased I sold out of this back in 2004. Everyone should do likewise. Why do you think they haven't become a REIT?

Sell DJAN (2407p) - BUY MCKS (150p) - & I'll check back for a reminder here each annual anniversary of this post..............

[nickcduk] 10/3/2010 08:46

I think what irks is that they just seem happy to do their own thing rather than go out and be proactive about generating shareholder returns. When markets were in freefall last year they should have been taking advantage of their very modest gearing and picking up the huge bargains on offer. Instead they twiddled their thumbs and let the opportunity of a generation pass by. It doesn't really matter to them as they are extremely wealthy already but other investors aren't as lucky.

[topvest] 09/3/2010 21:54

I do agree that the market price discount is excessive, but I'm not sure that bothers me and it certainly doesn't appear much of a concern to the Freshwaters. This is Daejan and they plough their own furrow. If you read their annual report, their long-term returns are spectacular. Short term movements are irrelevant for a long term holder, indeed they are an opportunity to add more.

[bolador] 09/3/2010 05:35

No, I do not want to sell at a near fifty per cent discount to nav. Rather I would prefer the company management to consider why it wants to be quoted if it is, as you say, so indifferent to the share price What "they do best" is not good enough right now and the share price performance so far in 2010 is sufficiently poor to merit comment from the company.

This is so because a near straight line fall from £30 to £24 since January without obvious reason is not "some volatility". It is an example of wealth destruction in a stock market that is by contrast doing quite well this year.

This brings me to my main concern which is that the principal shareholders might find a low share price in relation to nav attractive for the porposes of mopping up the shares they do not already own.

A bid for the balance of oustanding stock becomes more interesting daily as benign neglect destroys the share price

This process if it ever came about might shut out minority shareholders at the bottom of the market.

[topvest] 08/3/2010 21:41

It's an illiquid stock. If you look at the company's long term record it is superb, even at a 50% discount. I'm just going to hold these for a decade or so and see what they are worth then + accumulate an increasing dividend stream. It really doesn't matter if the price has some volatility as this is not a trading stock. Management don't care and just get on doing what they do best. If you don't like it, sell!

[bolador] 08/3/2010 08:11

topvest,

Quite right I do not understand it. I have watched, held and enjoyed this stock for many years and I do not appreciate very small share deals disrupting
the share to the extent they have in this case creating a near fifty per cent discount to nav. All the ground has to be made up at some stage and it will be hard work. I do understand that the reason to hold stocks is to make a positive return. Perhaps you have dificulties with this concept and prefer a soft headed and trivial sentimentalism.

[topvest] 06/3/2010 08:40

You obviously don't understand this company. They don't issue statements on short term movements or trivial matter. They don't care and we shouldn't either; you by Daejan for the long term and in the long term they are as solid as they come!!

[bolador] 05/3/2010 13:58

Well, whats going on here.The share price falls daily on tiny volume
despite an interim management statement in mid Feb saying that there was nothing untoward to report. What are the company brokers up to ? Why is the company letting this straight fall from £30 to £24 and a few pence in the share price take place without comment ?

[bloodsports] 04/1/2010 15:17

I agree-solid company, have been well managed and clearly aim to be around for next fifty years, if they and me still here sure we will have done ok!

[topvest] 30/12/2009 17:35

I've recently bought a few of these. Very solid company at a large discount to asset value.

Given the family holding these are likely to stay on a big discount. However, they have treated the 1,500 minority shareholders very well in the past and show every sign of continuing to do so in the future.

I like this;

"50th Anniversary

In past annual statements I have often emphasized the importance of taking the long view and pursuing a prudent course. Such an approach is more relevant than ever in this the 50th anniversary of Daejan's flotation in 1959 as a listed property company. At the time of flotation, Daejan owned properties valued at £4 million with equity shareholders funds per share of 29p. Even in a year of
depressed property values in both the UK and USA the equivalent figure at 31 March 2009 stood at £46.60 per share, a 160 fold increase over the 50 year period.

We are proud of our history from which we derive our business philosophy and our balance sheet strength but our focus is firmly on the future.We will strive to build long term net asset value so that the steady growth which has characterised our first 50 years continues as the hallmark of our next
half century.

As ever, our thanks must go to the loyal and hardworking members of staff for their help in meeting the challenges of the last year."

[bisiboy] 21/11/2009 10:44

nav just what i expected happy to be a holder

[bloodsports] 06/10/2009 11:19

Daejan always seem to bounce back strongly whenever the market picks up. This must show some underlying strength. They just seem and look so solid. Buy on the dips I think.

[monty panesar] 22/9/2009 19:24

NAV over £46. Discount still way too big. Should be way over £35.

Also been buying distressed assets in US so will benefit from weak £.

[verulamium] 22/8/2009 12:09

Fair point, they've got some excellent property and don't let go of it lightly (apart from my garage!). Good mix of residential to commercial too, I think - about 50:50 last time I looked.

[topvest] 22/8/2009 08:58

But they are still around and haven't trashed shareholder value like the so called 'real estate darlings'.

[verulamium] 22/8/2009 01:55

Well run, topvest? You obviously haven't had much to do with the Freshwater empire!

Their ability to leave perfectly lettable property empty for vast periods of time is legendary (I know of one flat they own that's been empty for 5 years - they could have made £100k from it in that time). Their property management is patchy (to be generous) and they have several employees who could never survive in the real world (but if you wear the right hat, it's hard to lose your job). The good staff tend to leave pretty quickly. Their office systems seem to be stuck in the dark ages. Their late payments to contractors mean that the decent ones won't even think of working for them.

On the positive side, they did once manage to "sell" me a garage in London for the princely sum of nothing...by mistake. They are, I have to say, slowly getting better. But that is from a very poor starting point.

[whiterussians] 16/7/2009 13:21

up she goes

[whiterussians] 16/7/2009 12:39

our core rental activity remains strong and
this enables the board to recommend a final dividend of 48p

[bisiboy] 15/7/2009 17:53

NAV came in slightly higher than i thought which is a positave
little dissapointed with the maintained divi but to me that is a sign
they are looking to buy

[whiterussians] 15/7/2009 15:22

looks ready to go higher now, 23 pounds initial target

[whiterussians] 08/7/2009 14:54

Allsop commercial prop auctrion yday lots being sold on yields of sub 5%

very good news

[racg] 08/7/2009 11:25

How can you say they ve treated minority shareholders fairly?

They may like the respectability of being listed but they obviously don't give a hoot for the minority holder.