Danakali Share Discussion Threads

[coscos] 22/5/2002 10:01

forfaiter...

still waitimg for an answer to my query. Please reply.

Thanks, beat me to it.

'No trading position'. Fair enough. Would you reconsider your own position after the CC?

[forfaiter] 22/5/2002 10:00

EK...cutting costs and selling assets is not rocket science.....but growing a company is ...that is why they command higher valuation ratios...

This is now a market that likes to see the growth first...so the jury may be out until they deliver

The EBITDA was as low as 4% of revenue......so it doesn't take much to grow it from that level.....the real test will be growing it from the present level....Q4 showed that the rate of increase had decline considerably and was in fact down on the UK accounts...

You are focusing on your dislike of me and my position... which is irrelevant ...and means you are bringing emotion into the market place......

[chestnuts] 22/5/2002 10:00

ff you haven't answered my questions from post 3693

[brianbush] 22/5/2002 09:56

Gentlemen/Ladies
Your squabbling must be amusing to the market-makers!

[easykill] 22/5/2002 09:55

forfaiter

it begs the question as to why you dont practise upon your own words. Why do you keep a holding in DNK ?

[millionaire] 22/5/2002 09:53

One point to consider though is this:-
When is the recovery going to happen, and will it be
sustained?
DNK, I believe are best placed to advise on this
and best placed within the industry (by a mile)
to take advantage of it.

[coscos] 22/5/2002 09:50

forfaiter....

Going into tommorows conference call, would you prefer to be in a long or short position? Genuine query.

[easykill] 22/5/2002 09:48

psychicdoc

i agree. Revenue decreased but Dnk sustained profitability. And this is what counts. Revenue decreasing in the past year isnt something out of the blue - ff seems to think DNK should have been the exception to other businesses and should have produced rocketing revenue. But in a year which businesses were slaughtered DNK increased margins and in Dollar terms increased EBITDA 4th quarter in a row. Debt is serviceable quite adequately. FF is trying to with all his might to highlight points and magnify them so much to make it look that DNK are in the mire.

If DNK can produce such a turnaround and produce consistent EBIDTA profits in an abysmal year, I can safely say they can improve on that in a year where recovery is seen.

357

ff's words carry little weight even though he may produce facts and figures. His negative subjectivity is too transparent. He is shorting the stock and as shorters do spread doom stories around bb.

[forfaiter] 22/5/2002 09:47

357...lol....you keep thinking that if it makes you happy..

[chestnuts] 22/5/2002 09:45

ff i read your posts and compare them with others i am not an accountant and some of your comments might be right but you say you have holdings but surely a man with your knowledge who thinks danka is going down would of sold your shares by now and moved on to other things instead of painting danka with such ableak future this does not addup can i have your reasons for holding onto your shares in Danka i bet you don't reply.

[forfaiter] 22/5/2002 09:45

EK...LOL...can't you see me blushing at my terminal...

.....I posted when I thought the share was going up.... and now I am posting why I think the share is going down.......simple as that....some people may have followed me in....so I owe them that much....

Remember I am not the cause of the decline......the trend is always determined by the bigger fish....

There is nothing worse than being on the wrong side of a market...we have all been there.....it wears you out....

[357aman] 22/5/2002 09:39

EasyKill,

Because he already sold and lost. He has got a mentality that if i lose let
everybody lose. He is basically a shorter. He is history!

[psychicdoc] 22/5/2002 09:37

4th quarter of consecutive ebitda growth yes revenues slightly less but that was expected dsi was sold dont forget which provided 10-15% of revenue but still shows profit, why? because margins have been improved considerably and credit to the management for all that, yes off course we need to see better revenues and if we do we will be at £2 very soon , let us see if comp will give any guidance for revenue for this quarter, but if it is strong and positive then someone will surely get their fingers burnt

[easykill] 22/5/2002 09:34

forfaiter

but what is the cause for your negativity ?

many on here sound positive because they hold the stock and hence subjectively post positive comments.

but what is the object of posting your negative comments ? surely not to enlighten us with gems of knowlege ?

are you shorting or not ? why are you so embarassed to declare your current trading stance on the stock ?

[forfaiter] 22/5/2002 09:29

EK.....I am not saying it won't grow.....I am saying it has to grow....the restructuring has been impressive but so as the share price rise...from a low of 6p to a high of 85p.....which more than reflects the achievement to date...

Now the market is looking for growth ....and the recent results did not reflect any growth... in fact the revenues are still declining...which is a worry with the extra financial commitments....

For the record I still have a substantial holding from those lows......but I am still a realist.....

How about some of you optimists back up your claims with some valid arguments...instead of ...its going to a pound...coz I want it too..

[lex1000] 22/5/2002 09:29

forfaiter,

Just one word please, Yes or No:- Are you shorting Danka?

[easykill] 22/5/2002 09:22

forfaiter

lost for words ?

[easykill] 22/5/2002 09:17

forfaiter

so are you saying that since DNK experienced hardship in the past year (when it transformed itself), a year which was unprecedented in business terms, DNK will be unable to grow in the forthcoming year when US is seeing signs of recovery ?

I take your words with a pinch of salt. Why ? because I have read your comments in the past few months and they were in glowing terms regarding DNK. And now its a massive turn around. I would give credibility to your conerns if it highlighted some positive aspects to what DNK has done but all of a sudden its all negative. This subjective stance is too transparent and its quite apparent that you have a cause for this negativity.. I wonder what that is ?

[forfaiter] 22/5/2002 09:17

Millionaire...

LOL...Yeah right...

[millionaire] 22/5/2002 09:10

Totally agree.
The fact that Wall Street was so bad has pared back
many of the gains that were made yesterday.
As long as Wall Street doesn't tumble, the momentum
is still UP. Sorry forfaiter your short is going to lose
more money.

[forfaiter] 22/5/2002 09:08

Most of the debt reduction was achieved by selling DSI and the lack of PRE Tax profit shows the underlying business is just about breaking even...

They have to start growing the business to cover the extra financial commitments......

Selling more machines is only part of the solution...60% of DNK revenues is derived from the rental/service side of the business which is in decline as the more reliable digital machines need less servicing/parts..

The rental/service revenue declined by 11% year on year as opposed to only a 5% decline at IKN.....where it only accounts for 43% of its revenue base.....which means DNK is more vunerable than its peers to the industry wide transition....

[psychicdoc] 22/5/2002 08:54

debt has been reduced by over 57% in 1 yr and still showing operating profit with continued ebitda growth and positive cash flow, looking at £1 in a few weeks time,

[easykill] 22/5/2002 08:31

ff

if the mangement have been able to take Danka from a company on the verge of bankruptcy with gigantic debt and tranform into a company making profit then it wont be such mammoth task to repay their outstanding debt... will it ?

Let see what the management have to say on thursday about going forward.

[forfaiter] 22/5/2002 08:18

The main problem now is that the company has to keep improving to meet its extra obligations to the banks over the next two years.

The effective interest rates under the credit facility are LIBOR plus 5% and will increase by 0.5% on june 29 2002 and quaterly thereafter.

They had to pay $16m on April 1 2002 for the outstanding coupon payment from the restructuring which will be accounted for in the Q1 results

On June 30 2002 they are required to pay the banks a fee equal to 1.5% of the total commitments under the credit facility and on June 2003 a fee equal to 4% of the current commitment.

The term component of the facilty requires principal installments of $5m in Fiscal 2002... $16m in Fiscal 2003... and $24m in fiscal 2004 with payment due in full($187m) on March 2004 (which is $8m at the end of each quarter with the remaining amount due on the 31 march 2004)

The $47.4m zero coupon is due for payment on April 1st 2004.

That is why it was so important for the company to issue a strong set of results in Q4 to reassure investors it can meet the extra obligations for the coming fiscal year....

[ambabe] 22/5/2002 08:17

Thankyou Oaks - a true gent!!

I will check this evening will be interesting!