Danakali Share Discussion Threads

[zedder] 07/6/2005 16:51

Up towards $1.50 in the US now.

[yellow_snow] 06/6/2005 14:55

Further strength early in the US, hopefully this continues until the results come out.

[easytimes] 04/6/2005 10:36

The only positive with DNK is that they owe so much money to banks that they would have to offer some kind of restructuring package (again) to recoup their money. I sold out of these over a year ago when they made it clear that sales in Europe were disappointing and they were laying off sales staff combined with contracting out their IT dept (an expensive option as third parties adhere to the contract agreement and make up revenue selling services outside the agreement with huge margins).

[zedder] 03/6/2005 23:51

Closed at $1.40 in the USA today. A definite break back up through the first of the Moving Averages (50 Day). If the momentum can be maintained we could see the price moving back up towards $2, or maybe even to the 200 Day MA of about $2.60. The pound has strengthened against the dollar recently which is also a positive influence. At $2 and an exchange rate of 1.815, that would be about 27.5p.

[willjam] 31/5/2005 08:00

I agree with Lowtrawler

They are also losing key staff in Europe which was their most profitable area of operation and are therefore losing customer and dealer base, A slow death.
I dont see Danka, in its present form,being around end 2006

[lowtrawler] 30/5/2005 19:24

threejays and johnymac

There is an argument that they're clearing the decks of all possible bad news to setup a sustained recovery. However, the problem with that theory is lack of revenue. Unfortunately, DNK can no longer sustain current levels of debt with current turnover. I don't see a rights issue being received warmly and debt holders are unlikely to pour good money after bad either. As I see it, there are now three possible routes:

1. A takeover (most likely option). Could be a number of possible acquirors. Expect ordinary shareholders to receive something less than 10p.
2. A rights issue at huge discount to the current price. The shareprice would reduce to match and it would be a long climb back for ordinary shareholders. You would need to have complete trust in the management to support the issue - is this likely?
3. Slow death followed by liquidation - DNK are going to bleed cash unless either 1 or 2 happens. Eventually the banks will foreclose and take what little assets remain.

DNK's main problem is it's crippling debt. It has a reasonable business base from which to work but then you hit problem 2 - the management have failed at every turn. With low management confidence and crippling debt, DNK have very little room for manoeuver.

My current view of fair value is only around 5p.

[johnymac] 30/5/2005 18:25

According to Todd Mavis

"This progress in key areas will provide us with the foundation for a much improved financial year 2006"

Maybe we have hit the bottom, the bad news may well have been priced in by the market.

Therefore may be a good time to buy, depending on what happens in the next few days.

[threejays] 29/5/2005 08:27

lowtrawler what now for danka? your thoughts please?

[geng] 27/5/2005 14:10

Ha Ha Ha totaly inept bunch of idiots couldn't manage a pi55up in a brewery!

Looks like yesterday was a sucker rally!

Oh well back to sleep for another year

[serious punter] 27/5/2005 13:46

I was just about to dip into DNK again, but based on the RNS,will hold fire.

[geng] 26/5/2005 23:11

Zedder - Someone knows something - late results, over 1M volume and a 10% rise.

Either a sucker rally or maybe at last some increase in revenue - or at least no further decline - or possible takeover.

The trouble with the takeover theory is that there are a lot of major holders who paid well over $5 for their shares so it would have to be a good offer. I can't really see this - just have to wait and see.

[zedder] 26/5/2005 17:14

Signs of life stateside today. Already at $1.35 on good volume. The start of it?

[willjam] 25/5/2005 08:50

Still no results, not a good sign
Deadly silence from the company

[newstarter] 23/5/2005 11:25

Thanks LT - will keep a beady like on it!!

[lowtrawler] 23/5/2005 10:50

NewStarter

Good luck with your strategy. However, this time I think things are different. Last time around, DNK management were given the benefit of the doubt and allowed to implement a recovery strategy including major investment and reorganisation. The shareprice has collapsed because the strategy is now seen not to have worked. It is unlikely that DNK will be allowed to do the same again. Their only hope is a takeover. There will be plenty of potential suitors eyeing them up. However, the shots will be called by preference holders and the banks - not by ordinary shareholders. Consequently, even in a takeover situation, it is not clear how much the ordinary shares may be worth. I think it highly unlikely that DNK will see 30p again, never mind 68.

[newstarter] 23/5/2005 09:42

I had some at 7p last time - out at 68. will do same again if goes there again

[cinoib] 19/5/2005 15:56

Oaklands,
If you're still around think that header needs changing to something like 10P the real test.

[geng] 19/5/2005 14:01

Not looking good - most late results are bad!

[zedder] 16/5/2005 13:59

Results due anytime now. Announcement tomorrow for Thursday release?

[geng] 04/5/2005 20:12

Is it results tomorrow or next Thurs anyone ?

[jotoha1] 03/5/2005 09:55

Thank u Zedder!

[zedder] 03/5/2005 09:38

$1.30 divide by 4 (1 DANKY ADR = 4 DANKA) divide by exchange rate of 1.9 = 17.1p