Danakali Share Discussion Threads

[blockbuy] 23/5/2003 08:00

SP, how did you manage to buy before the open pls

Ta

bb

[serious punter] 23/5/2003 07:57

Mornin All

Zedder

Your rewards are in hand - well done. I missed out I think, but will watch with interest today. Should open at about 60/61 I guestimate.

Happy trading all.

edit Just got 25k for 58

[blockbuy] 23/5/2003 07:56

Morning all..................

ff, at current $ rate thats $6.5.....

obvioulsy EVO and WINS didn't see last night's action.

If they keep the price down then that'll discourage sellers............don't forget, the US closed close to 60p last night , so until we get the US activity later you'd be mad selling............

53 / 57 so far...bargin city..... thats $3.58 on the mid price

gotta shoot....see ya later all

ps, zedder, I use stockcharts.com (put in danky / any us stock and from the pull down select 3-way gallery view........

ah I see EVO and WINS are up and a 58p buy

bb

[panagos] 23/5/2003 00:35

Zedder, if they are good back to 84p. If not 32p.

Good and bad debatable though

Good luck. 52p is a critical price for danka

[zedder] 23/5/2003 00:30

DANKA are traded on both the Nasdaq Small Cap Market as well as in London. Results are due today and will likely be at 1330, an hour before the US open.

My expectations:

- Profit 20 to 25m (14.2m last year)
- Earnings Per Share 6p+
- Turnover level at 1085m (yes that much)
- Profit Margin maintained at 35.4%
- Debt 140m or less (208m last year - naturally reduced interest should add to profit going forward)
- Capex 30m with possible guidance that this should be decreased now Vision 21 software up and running
- Possible announcement of Debt Refinancing


As I type, the Mkt Cap is 128m. Share price has been over 80p within the last year. If the US price (1 DANKY ADR equiv to 4 DNK shares) can hold above $5 for the qualifying period, shares will move from Nasdaq Small Cap to Nasdaq National Mkt. This should ensure additional Institutional buying.

One hour to go!

[forfaiter] 22/5/2003 23:05

The management are starting to sound upbeat...and why not... they have a strong balance sheet...cash in the bank....are close to refi(which will reduce the onerous interest payments) and are talking of aquisitions to stimulate growth...not bad for a company valued at just 6 weeks sales which is basket case territory...

[forfaiter] 22/5/2003 22:58

Hmm...If this turns out to be the start of another 5 waves up....then we could break the £1 level over the next 3- 4 months..

[zedder] 22/5/2003 22:00

BB,
Can't get it to link in, but have a look at this for your double-check:

[blockbuy] 22/5/2003 21:53

zedder, I too rememember the days of $1.35 to the £....bites doesn't it.
I see DNK is now back over the 200dma

Last time(s) this happened it went $5+ plus didn't it?

ff can you confirm/deny pls.

Ta

BB

[blockbuy] 22/5/2003 21:50

i'm looking more towards the end of the month when the company's employees get paid and the share scheme kicks in...............

Always plent of buyers then....

tomorrow is gonna start of with the predictable stab at the mm's cos they'll open up no where near the us close, this will then change to 'oy hey look the US is at a premium to the UK, which means I can get in and if the US opens flat then the UK has to rise anyhow' realisation and the buyers will come in.

The seller will come in as soon as they see the buyers drying up and the cycle will continue until close to 14:00 and the US opening.....

Then who knows eh???

as I said tomorrow is going to be very very interesting....I hope to get a top up price....

[zedder] 22/5/2003 21:48

BB,
Must admit I'll be sorely tempted above 70p. Have successfully traded in and out of this for 2 years now. I sold some at 80p on 13th May last year, so I know it can get there. However, the $ was stronger then, so that 80p would be about 75p now.
I can't help thinking that it might just keep going this time. The Conference Call in the US was obviously VERY well received today. Institutional Interest in DANKY is only 25%. These Institutions are well aware that DANKY could get back onto the Nasdaq National Market from the Small Cap if it can hold above $5 for 90 days (number of days needs confirming).

At todays UK close, Mkt Cap was 133m. DNK reduced debt by 70m in the last year and increased cash by 10m, while also producing a 20m profit. As I said on another thread today, if someone bought the company for 100p a share (250m), and paid off the debt (90m after using the 50m cash to pay off some of the 140m), they would own a company that could produce almost 100m in profit (70m put towards debt reduction + 20m profit + 10m saved in interest).

[blockbuy] 22/5/2003 21:48

i'm looking more towards the end of the month when the company's employees get paid and the share scheme kicks in...............

Always plent of buyers then....

tomorrow is gonna start of with the predictable stab at the mm's cos they'll open up no where near the us close, this will then change to 'oy hey look the US is at a premium to the UK, which means I can get in and if the US opens flat then the UK has to rise anyhow' realisation and the buyers will come in.

The seller will come in as soon as they see the buyers drying up and the cycle will continue until close to 14:00 and the US opening.....

Then who knows eh???

as I said tomorrow is going to be very very interesting....I hope to get a top up price....

[miata] 22/5/2003 21:31

Thanks; hope it gets there tomorrow.

[blockbuy] 22/5/2003 21:27

70p or $4.5

[miata] 22/5/2003 21:17

With the markets closed on Monday, the bulls should be able to push up the market tomorrow aided by general short-closing before the long weekend.

So the question is at what price should one take profit on part of one's holding?

[blockbuy] 22/5/2003 21:10

plenty of 3.90 / 3.91 / 3.92 after hours...........

looks like the closing spread is 3.90 - 3.92

I make that approx 18%

tomorrow I'm sure will be very very eventfull!!!!!!!!!!!!

[zedder] 22/5/2003 21:10

A quick re-cap:
"zedder - 19 May'03 - 17:48 - 11254 of 11293 edit

Hi SP,
To me, the volume in the US says it all. I don't think there has been over 400k for nearly 2 months now. The price is just drifting down and the Institutions seem content to let this happen. They obviously take the view that they can soak up a few cheap shares as the Retail holders get twitched and sell up. Generally, this share moves fastest when volume is 2M+. I would be very worried were this drop to have happened on such high volume, whereas I having been taking the view that this has been a buying opportunity. A couple of 2M+ volume days could see this back over $4 very quickly.

Naturally I am unhappy that the price has been dropping after each of my recent buys. However, I have seen occasions where this stock has risen 50c plus in an afternoon when the UK market is shut and we cannot react to get the benefit. I still think there may be some sort of surprise with the results on Thursday. Naturally I'm hoping it is a surprise and not a shock!"



As has been seen several times before, a 50c+ gain in the US while the UK market was shut. What was even more impressive is that it was not on 2M+ volume. If we could achieve that (assuming a high % were buys!), then this will really take off. Personally I think we will see $4+ in the US tomorrow.

Real-Time Quote
Time of last trade: 3:59:00 PM Eastern.Danka Business Systems PLC
Last 3.85 Bid 3.75
Change +0.54 Ask 3.87
Volume 610,284 Bid/Ask Size 4100.00 X 800.00

Day's High 3.93 Open 3.40
Day's Low 3.30 Close 3.31

[zedder] 22/5/2003 21:05

Real-Time Quote
Time of last trade: 3:59:00 PM Eastern.Danka Business Systems PLC
Last 3.85 Bid 3.75
Change +0.54 Ask 3.87
Volume 610,284 Bid/Ask Size 4100.00 X 800.00

Day's High 3.93 Open 3.40
Day's Low 3.30 Close 3.31

The US obviously liked the results. Unfortuantely, the enthusiasm did not really appear until after the Conference Call though, which means if you weren't in before the UK close you missed a 10%+ gain. Personally I think this may go back above $4 tomorrow.

[maxbubble] 22/5/2003 19:58

"the incubation of our multi-vendor services business in the U.S"

any chance they may use spare cash to buy some turnover for the above?

[blockbuy] 22/5/2003 19:45

Evening all..........can't believe what I'm seeing here.......

put a call in after 14:00 to get as many as poss....8k i got......(havn't been in for a while as it's been on the drop)

was looking for a gain in a few weeks, but lordy lordy.............didn't expect this.

There's going to be a stampede in the am on the back of the us ..........

As usual shame about the $ rate, but the uk should be looking at 60p at this rate early doors.....

will be looking to spent 3k in the am....

big hi to the regulars......hope life is profitable

[majic] 22/5/2003 19:17

Doesn't seem to be as steep as I thought it would be, if it can push a little closer to 3.85 then we may be in for 15% rise tommorrow over here.

I'm looking for a quick gain to 75p (next week) then I will think some more, not so sure of £1 though (not yet anyway).

May even pull profit from GHT, TNO or Ashtead for a good rise here in the morning since they aren't going to move as much!

DYOR

[miata] 22/5/2003 18:43

No they havent paid a dividend for years.

[dinglydanglydan] 22/5/2003 18:34

Excuse my ignorance please i dont know too much about share trading but does anyone know if danka pays a dividend? if so? when is it due and how much is likely to be? Thanks.

[shareman2] 22/5/2003 18:18

raced to 3.9 / 3.93 = 60/61p

[shareman2] 22/5/2003 17:22

they like it very much

back to $5 then