Danakali Share Discussion Threads

[fund1] 01/7/2005 08:03

Looks like the market like the news, thats all that matters to me!

[yellow_snow] 30/6/2005 23:56

We had a spike to over $1.50 in the states between the announcement of when the results would come out and the actual release so I hope this isn't another temporary blip. While the volume is impressive compared to daily averages it doesn't really impress on a longer term basis. The fact that the disposal news isn't out yet is also a bit of a worry, so I'd advise caution and waiting for the RNS, since we can at least trade in the UK on it before it hits the US markets.

[bertybassett] 30/6/2005 23:28

Thanks Zedder for your continued input, appreciated. Why a new thread? Always like this one as nice and quite with good 'on topic' posts, but will go and find it.

Back in about a month ago, not best entry point but hope you're right about the breakout!

[zedder] 30/6/2005 21:35

Finished at $1.48 in the USA today on very high volume. Looks like a definite breakout. That's equiv to 20.4p.

There is an alternative thread running now as well. However, it doesn't have the NASDAQ buy/sell interest data that is at the top of this thread.

[zedder] 30/6/2005 21:30

Finished at $1.48 in the USA today on very high volume. Looks like a definite breakout. That's equiv to 20.4p.

[geng] 30/6/2005 13:56

As usual Danka share price goes completely the oposite way to expectations!

Announces really rubbish results and the price goes up!

Just goes to show the manipulation that is happening in the states. Its the perfect vehicle for this. Reasonable turnover - not seriously in the Poo and not a massive amount of shates outstanding

[yellow_snow] 28/6/2005 21:31

Should be news of the disposal soon, sounds like its Canada and that the situation there was pretty dire. What will be interesting is the cash price as it'll give a low-end figure for the sell-off worth of Danka (as long as they break out the revenue figure at the same time).

[fund1] 28/6/2005 21:13

Creeping up each day!

[knowing] 25/6/2005 23:25

Wish you luck if your in. Was always an interesting company. Monday may not be the time to buy after drop in DOW.

[fund1] 25/6/2005 23:20

I agree Knowing about the results, But now maybe? the bad news is out of the way.

[knowing] 25/6/2005 23:11

With those results ?????????????? Horrible !

[fund1] 25/6/2005 23:07

Has Danka now bottomed out? Please feel free to put your view across. Negative or positive all views welcome.

[yellow_snow] 25/6/2005 17:39

It will be interesting to see what sort of price the disposal commands. Its one of the "underperforming" geographies (what one isn't?) but not the biggest, and assumed to be Canada. As part of the international ops (which only generate around 10% of revenue in total) I doubt it generates more than $30-40 million in revenue but the price will be significant as an overall evaluation of what Danka operations are worth to others. With a current market cap. of $90 million, and debt at $240 million (but cash of $100 million) any price greater than around 20-25% of revenue indicates the market cap. is too low. I'd hazard a guess that if the price is above this level they'll break out both the price and revenue hit, otherwise they'll just leave it at the price. In which case we can draw our own conclusions. Does anyone have any breakdown of the international operations, I've only got Europe, US and international comparisons.

[yellow_snow] 22/6/2005 09:48

zedder - hopeful signs ahead of the disposal news which must come this week or early next week. The US boards have taken it as read that the disposal is Danka Canada, so it'll be interesting to see if they announce what they intend to do with the cash when they announce the deal. They have been talking about further acquisitions which is a shame for shareholders, only a reduction in the debt will help in the short term.

[zedder] 22/6/2005 02:43

Finished at $1.40 in the US today. There has not been the capitulation in the share price that many predicted after the last results.

[lowtrawler] 14/6/2005 09:22

Loss on ordinary activities before taxation = £45.5m
Financial Costs of preference shares = £11.0m
Loss before tax = £56.5m

Arguable one-time costs = £14m

Hence, underlying LBT = (£42.5m)

Turnover = £668.2m

Loss = 6.4% of Turnover

The tax credits are only worth anything if at some point DNK can turn a profit.

To break-even, they need to increase average selling prices by 6.4% even assuming their cost base is constant, which it is not. Realistically, paying £29m in interest on loans and preference shares makes it unlikely DNK will ever turn a profit. Cash will continue to flow out and financing costs will increase. Shareholders in DNK must gamble on a beneficial financial restructuring (unlikely) or a premium priced takeover (possible). Most likely, a takeover will happen but at a discount to the current shareprice. Caveat Emptor.

[yellow_snow] 13/6/2005 20:59

Nothing doing volume wise in the states, down to $1.30, so I'm guessing nothing will happen until they release the details on the disposal. With luck they'll break out the revenue and loss figures for the country being disposed and we can judge things a little from there, since it isn't the worst underperforming country.

[rabbrooks] 12/6/2005 14:03

Let's hope there is new blood at the top level. The new non exec ,Downes, is about to retire from his finance director position at Shanks. He has no knowledge that i am aware of in the office equipment market which is rather different from operating waste disposal plants. On the basis that help is required for a retail/service led industry M.D, i am rather sceptical about this appointment.

[yellow_snow] 12/6/2005 13:44

I agree there's no solace to be found in this release. Same promises of better results in the next quarter, year etc. but maybe the loss of the CFO is a good thing. It might help to bring in someone with no history related to the sort of situation they've got themselves into. If they appoint internally then it could be a further disaster.
The question to be asked is whether the current price reflects all of the risk or whether we see the sub-10p levels of a few years ago. Back then the reorganisation of debt and what seemed to be progress towards profitability pushed huge rises. I have a small holding and had considered adding depending on the results but now I'm a hold at best and we'll have to wait for the disposal news and/or next quarterly results to gauge if there is a way out and they are on their way. Monday will be interesting in the US, I reckon it could go either way but I wouldn't be surprised to see it go below $1.20 again.
Their debt situation isn't a killer just yet but they are running out of time to get into a situation where they can pay it down reasonably or refinance on better terms. If disposals aren't going to be used to pay it down then losing then they need to hit their margin targets to make the revenue look sufficient to cover it long term. Tough job for a management that have been failures so far.

[rabbrooks] 12/6/2005 13:14

What a disaster this investment has been for everyone who has kept shares in Danka.The dilemma is do we ditch them now and suffer the losses or continue to bury our heads in the sand . The euphimisms contained in the june 10th report say it all. The departures of various senior executives over the years reflect what we,the shareholders, should also have done. The company looks as though it is ready for the full liquidation.
,

[yellow_snow] 10/6/2005 14:33

Bids back over 1.40 in the states and back to 18 p here so reaction doesn't seem to have been to bad. Maybe trading will get heavier after the conference call.

[yellow_snow] 10/6/2005 13:45

As previously advertised but the Sarbanes-Oxley compliance appears to have pointed out a contradiction with the upbeat stuff about Oracle implementation. Looks like serious internal accounting problems hence Wolfinger out the door. Initially bad reaction in UK, lets see what happens in the states.

[yellow_snow] 08/6/2005 21:16

Results will be out on Friday prior to US market open so around 1.30 pm as usual I suppose.

[yellow_snow] 07/6/2005 17:56

Well nice to have some form of a rally, if there aren't any nasty surprises in the actual results, which they've said will be out before the 14th, then we may finally have turned the corner sentiment-wise.