Danakali Share Discussion Threads

[blockbuy] 07/6/2002 08:40

morning all.

thin trading day expected....footie and all.

This weather don't help my handicap.

[chestnuts] 07/6/2002 08:20

I actually think the dow and the footsie have priced in the war so if they do start fighting you will get some movements but not as big as swing down as you think so i don't think they will fight and probably after another week or so they will start to climb back up imho

[sigora] 07/6/2002 07:59

EK he posts on iii as tizo, if and when he posts on this board its ozit.

[psychicdoc] 07/6/2002 00:57

no wonder they are keen to decrease debt significantly as it certainly makes good accounting sense,oaks also if interst rate is to go up .5%every quarter then sale of some assets to reduce debt is not a bad idea imo, i had thought european operations contributed about 400m of total turnover and that over 750 m was from the us, can you give us your opinion on this

[oaklandsway] 07/6/2002 00:49

The issue of "The interest rate will increase by 0.5% at the end of June and EVERY quarter there after" is still tolarable.

Lets talk about how much Danka used to pay the interest every quarter:

Q4 2001 = $14,389,000
Q1 2002 = $15,871,000
Q2 2002 = $11,053,000
Q3 2002 = $7,867,000
Q4 2002 = $7,505,000 (I assume the debt balance was about $342m)

Now for Q1 the debt balance max. becomes $304.5m or about 12% less. The interest expense is expected 12% less = $6,604,400. Lets add 0.5% of $304.5m = $1.52m. So the total max expected interest payment = $8.125m if we assume no more debt reduction. So, if debt is reduced further then the expected interest charge will actually around the same figure of Q4 2002 at about $7.5m for Q1 2003.

Is this a big issue??

[psychicdoc] 07/6/2002 00:45

ff i hope you shall not harp on about the same things again and again it is getting a little boring

[oaklandsway] 07/6/2002 00:35

The issue of "They have a fee of 1.5% of the outstanding credit facility to pay at the end of June" is also normal as part of a new credit facility. This will cost about $4.5million.

Again, this charge is agreed long time before but the credit facility is good for long term.

[oaklandsway] 07/6/2002 00:31

The issue of "They have increased term payments to make of $4m at the end of each quarter" is also not a problem as long as the free cash is enough to pay. Paying additional $4 million will speed up debt payment anyway.

[oaklandsway] 07/6/2002 00:27

If you know that the $16m notes had been paid by now then why you said "They have to seetle to outstanding notes which mature on the 1st of April 2002 of approximately $16m". OK, no more misunderstanding because the issue is only about "the Q1". But, again we know Danka have $50m free cash to pay, so it wont be a problem and the fact Danka will pay current matured debt of about $36m in total in which some of them will be paid in Q1 2003. But, as long as Danka have $50m free cash then there is no big isuue here.

Why you should repeat again and again if the issue is only about "the payment will be accounted in Q1 2003"?

You can raise the issue if Danka have no money to pay! Certaintly if the money is available then paying debt is something normal in business.

[psychicdoc] 06/6/2002 23:13

dazzy boy
dont you worry about me, just change your story line next time around

[dazz17] 06/6/2002 22:56

psyco

ok.....bury your head in the sand.......don't say you was not warned

[psychicdoc] 06/6/2002 22:53

fo dazz17 , no investment advise intended

[dazz17] 06/6/2002 22:42

lol.........have a look at the dow/naz after hour's dow -170+ -104 last time i looked= -274 roughly off the dow today......what's worst still is the 9600 level will be broken tommorow and remember it's a friday

This is not investment/gambling advice ....DYOR and be lucky

[oaklandsway] 06/6/2002 22:37

Shorting at current price is a bit risky, IMO.
Two weeks ago, many shorters did at 52p but could not cover up yet.
Yesterday, people who shorted at 59p still need to wait to cover back, probably tomorrow will get a chance.
So, a bit danger to short before US market open, IMO, DYOR, etc.

[ambabe] 06/6/2002 22:34

dazz = ff

Hmmm !! similar style, similar tactics! dyor!

Just a thought......

[psychicdoc] 06/6/2002 22:02

dazz17
you are another liar because you always say that,get your act together you scaremonger, i will be buying tomorrow

[dazz17] 06/6/2002 21:55

i think a bad bad day tommorow for people holding share's and that include's me was making arrangement's today to sell up nearly everything......look's like i'm to late
mind you sold dnk last week @68p

[chestnuts] 06/6/2002 21:49

dazz17 ff just trys to scare people so they will sell their shares

[dazz17] 06/6/2002 21:43

ff
so what your saying then is 50p looks a good bet soon and even the 42p fib level considering the dow looks like going back down to 9000 and draging the naz/ftse with it.

This is not investment/gambling advice....DYOR

The game is to beat the mm's if possible

just heard after hour's future's down 104

[oaklandsway] 06/6/2002 21:42

IMO, I am with you Sigora. Danky can run up very fast (+$1 in two days or +14p in one day), we just need to see the strong support around $3.40 then move up. DYOR, etc.

[forfaiter] 06/6/2002 21:29

Looking at the trading over the last month, 66% of which has been institutional and the subsequent direction of the share price it is pretty clear that institutions have been dumping the stock since the results....