Danakali Share Discussion Threads

[blockbuy] 25/10/2002 16:12

Thanks for the post Phook....

Just jumped in(small amount) based on US upward movement...after a quiet couple of days it looks like they want this over $2.70.

[phook inell] 25/10/2002 15:13

yeh,weird.

[oaklandsway] 25/10/2002 14:51

phook, do you see that no trade in the first 20 minutes?

[oaklandsway] 25/10/2002 11:53

very welcome phook

SG&A = Selling, general and administrative expenses

In the previous five past quarters SG&A included the payment of $34.4 million for tax retention operating lease or TROL of the corporate headquarters, Danka National Supply Center.

So, future SG&A must be leaner & meaner. Based on what I read (sorry if I am mistaken), paying that $34.4M was part of reducing the real estate liabilities senior credit so long term debt must also reduce significantly.

If I am right then we should see a significant increase in NAV.

[phook inell] 25/10/2002 11:27

thanks oaks

and whats "SG&A" ?

[oaklandsway] 25/10/2002 11:00

phook, sorry i had no time to check it again but if you refer to the q1 result then you must be right.

i expect the net assets will increase to at least £45m.

[phook inell] 25/10/2002 10:55

oaks

you say one will see if NAV has increased.

from the last balance sheet they had NET assets of £41,201,000

so with 249m shares in issue, this comes out to 16.5p / share

Is this correct ?

[oaklandsway] 25/10/2002 09:25

Buyers controlled the game.

US MMs tried to get the price pegged in the range between $2.50 and $2.56 to fill big orders as indicated by "buy super messages" and "buy interest messages". Big accumulation so far! If buyers get more bullish then MMs should not be able to hold the price in this range anymore.
Please, watch how bullish US buyers from today to next Wednesday as some of them might have got the leak. Breaking $2.65-ish could lead this baby to $2.90-ish but should be no strong resistance until $3.40.

ANOTHER INDICATOR
The difference between 13-day EMA & 50-day EMA is only 5c. If price stay above $2.55 today then those lines could cross, in which indicates another start of bullishness. We only see the line of 13-day EMA above the line of 50-day EMA happened from late January to May. That's why I said yesterday that "Christmas has come early this year", IF that kind of bullishness comes back to us next week. IMHO.

PS. Remember, I assume the bull will come in bigger style today or Monday as they expect that the earnings will be better than historical Q2. I could be wrong so please DO NOT buy without enough DYOR. Trading one week prior earning is very risky that could give big reward or loss.

[phook inell] 24/10/2002 20:17

oaks

thanks for that

whats the current NAV for Danka ?

and whats "SG&A" ?

cheers

[oaklandsway] 24/10/2002 19:38

phook,
I won't concern too much on revenue. Danka won three big contracts recently which will be put in next Q report. IKN still expect lower revenue for next Q but I think Danka will increase revenue if they add those contracts. The only concern will be revenue from Danka Europe but Danka US is ready to win further big contracts, IMHO.

I will watch the NAV, remember NAV of IKN went up over 10% & long term debt declined to $595m. Based on NAV, IKN worth around $10.2 & based on EPS of 10 will worth almost $10.

So, I expect Danka will increase NAV & reduce debt significantly. If Danka can produce positive EPS then EBG will recommend to value Danka based on EV/REV comparing to IKN, which means worth between $2.90 to $4 if IKN worth between $8-$10.

It won't surprise me if at the end of the day Danky worth better than IKN or XRX because SG&A should reduce significantly after moving to new headquarter.

[phook inell] 24/10/2002 18:50

oaks

whats your minimum expectation for Q2 revenue ? Eg revenue that they should produce which wont dissapoint.

and further a bit odd they are holding CC on the same day. They usually keep it 1 week after results.

[oaklandsway] 24/10/2002 18:41

Christmas has come earlier this year. IMHO.

[phook inell] 24/10/2002 17:52

Danka Sets Fiscal 2003 Second Quarter Financial Results Release Date and Conference Call
Thursday October 24, 12:41 pm ET


ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Oct. 24, 2002--Danka Business Systems PLC (Nasdaq:DANKY - News) will release second quarter financial results prior to market open on Thursday, October 31, 2002, and will have a conference call at 11:00a.m. EST that day.

[oaklandsway] 24/10/2002 14:37

I believe on 01 Nov.

The problem with CEL is the target price of 20p (if can beat the expectation of £2m profit) but resistance would grow at 18p.

AGT still be good to pay at 20p or under (watch the volume before buying), IMHO. Still can trade (in & out) until 29p. Breaking 29p could lead to 40p-ish. IMHO.

[panagos] 24/10/2002 14:27

thanks, im thinking of investing either cel or agt. I m not sure yet

Do you happen to know when the danka q2 results are published. Last year was on 7.11.01.

[oaklandsway] 24/10/2002 14:23

Panagos,
I had sold CEL sold at 14.5p few months ago before the market crashed. Chart looks better now.

[panagos] 24/10/2002 14:15

Oaks, CEL looks good. Are you still following it? Results are out soon, any views?

Thanks

[phook inell] 24/10/2002 13:13

by the way the street was expecting 21c/22c, IKN came in with 25c.

[phook inell] 24/10/2002 13:07

IKON 2002 results :

For Fiscal 2002, net income was $150.3 million or $.99 per diluted share, which includes a $.04 benefit related to the reversal of Fiscal 2001 restructuring charges. Excluding the benefit of the restructuring reversal, net income for Fiscal 2002 was $143.5 million or $.95 per diluted share, a 17% increase over $.81 per diluted share for the prior year. For comparative purposes, $.81 for Fiscal 2001 excludes a loss of $.43 for special charges, excludes a $.01 gain from discontinued operations, and includes a $.28 impact related to not amortizing goodwill in accordance with SFAS 142. For Fiscal 2001, the Company reported earnings of $.11 per diluted share.

Revenues for Fiscal 2002 totaled $4.83 billion, a decline of $446 million or 8.5% from the prior year. The Company has been aggressively divesting or downsizing several business lines over the course of the year to improve its long-term business mix and operational performance. The decline in these revenues accounted for $265 million or 60% of the revenue decline, with all other revenues combined down 3.6% from Fiscal 2001. Delays in customer spending decisions and a generally soft economic environment continued to pressure revenues; however, the Company continued to see growth in facilities management, its largest outsourcing offering, as well as continued strong growth in sales of high-end, segment 5 & 6 copier/printer equipment - two of the Company's key growth priorities for Fiscal 2002.

Free cash flow for Fiscal 2002, defined as cash from operations less net capital expenditures, was $339 million, surpassing the Company's expectations and prior year results.


Fourth Quarter Results

Net income for the fourth quarter ended September 30, 2002 was $39.3 million or $.25 per diluted share, including a $.04 benefit related to the $10.5 million reversal of Fiscal 2001 restructuring charges. Excluding the benefit of the restructuring charge reversal, diluted earnings per share for the fourth quarter were $.21 - in line with the Company's expectations for the quarter. The $.21 in diluted earnings per share for the quarter reflects a 10.5% increase from $.19 per diluted share in the fourth quarter of Fiscal 2001. For comparative purposes, $.19 for the fourth quarter of Fiscal 2001 excludes a loss of $.44 for special charges, and includes a $.07 impact related to not amortizing goodwill in accordance with SFAS 142. For the fourth quarter of Fiscal 2001, the Company reported a loss of $.32 per diluted share.

Revenues for the fourth quarter of Fiscal 2002 were $1.18 billion, compared to $1.28 billion for the same period in the prior year. The impact of certain downsizing and divestiture actions the Company employed during the year accounted for approximately 62% of the decline. Excluding these actions, revenues declined by approximately 3.3% in the fourth quarter compared to the same period a year ago.

[tizo] 24/10/2002 00:57

Xerox results!

[zedder] 24/10/2002 00:35

After my sell yesterday, found a possible short-term ride on a Stagecoach (@15p).
The effect of XRX and IKN results on DNK could be interesting. If DNK are doing well, then hopefully this will have caused some damage to the others. Trouble is, will DNK take any flak that might fly? I'll be interested to watch the action unfold, but happy to be on the sidelines!

[clairvoyant1] 24/10/2002 00:27

this is psychic doc having problems with my old regstn
any news from the agm guys and why is it being marked down comp to close on nas last 2 days

[johnymac] 24/10/2002 00:18

Whats the verdict on the next movement for Dnk ?? Do you all think the rally has ended ??

[blockbuy] 24/10/2002 00:15

phook, whats the market expecting for XRX today?