Danakali Share Discussion Threads

[yellow_snow] 27/7/2005 09:50

Given that the share price looks well discounted even at these recently elevated levels it could just be the effect of the new CFO bringing attention to Danka from some of his peers and the brokers he had to previously butter up. The buying has been steady but not spectacular and we know this stock is totally governed by sentiment. I suppose another disposal could be in the offing at a level that would allow them to pay down some debt, although on the fool board a UK Danka distributor said that they've seen sales up recently, so maybe it is just better than expected figures about to come out. On the other hand the distributor did make the point that the UK (and Europe for that matter) have never been the problem. If they could get a decent price they should sell Danka US and everything would be sorted!

[miata] 27/7/2005 08:44

Something, but what?

Latest to add to the recent list of departures: Terry Bentley, a Vice President, "has left Danka to pursue other opportunities".

[geng] 26/7/2005 22:12

Looks like $2 is about to be broken! another 3% up in the US tonight. Results to June must have been good - or theres something heavy going to happen.

[yellow_snow] 26/7/2005 17:38

Well the spread has tightened at least and its holding in the 1.90s in the states, it would show significant strength if it manages to break $2 before the results come out, just looking at the charts would indicate a straight run up to $3, which I fear sadly is just wishful thinking as nothing is straightforward with this stock.
Interestingly one of the analysts has projected revenue in the results at $280 million which I think is a bit low, but if that sort of level has been factored in as the best estimate then it shouldn't be too hard to hit. Given that last year was $310 million and taking into account the sale of Danka Canada, its still more than a $20 million shrinkage in revenue or nearly 7 % . Anything better than that together with some evidence of cost control and we really will be heading north of $3 in the states and towards 50p here.

[miata] 25/7/2005 14:23

Xerox missed and its trading down about 6%.

[bertybassett] 21/7/2005 21:47

Yes Yellow, seems the spread just gets wider which makes it not so tradable short term. Mind you my mum asked me to look at EUD today as she fancied a few, buy at 9p sell at..wait for it....5p now THAT's a wide spread.

[yellow_snow] 20/7/2005 09:40

Mmmmm, $12. not this year I fear but if they actually succeeded with all the cost savings and stabilised revenue its possible. I'd settle for 50p here though.

[geng] 19/7/2005 17:30

I would imagine the figures to the end of June (which most in the know would know by now) must be good!

Going back to around 2000/2001 a similar thing happend and it went 10x the bottom!

If it does that now ($12) - I could consider retiring.

[yellow_snow] 19/7/2005 13:28

Premarket at 1.80 in the states after the IT outsourcing. I suppose things are so bad in-house that anything outsourced looks good. As long as things stay positive before the results then I'm happy. Positive after the results and I'll be delirious.

[yellow_snow] 16/7/2005 10:58

Certainly a change for the better in terms of sentiment and the repeated high volumes over many days suggests there is some institutional interest but as 1.70 is a 50 cent increase from the floor at 1.20 and 1.80 is a 50% increase, together with 2.00 being a nice round figure, I doubt it'll get above 2.00 before the next earnings release unless there is a more significant disposal announced. If it bounces back into the 1.70s and maintains that level for a while I think its well placed for a move over 3.00 after the results as long as revenue doesn't slip below $285 m for the quarter, and the consultancy costs and goodwill writedowns don't eat into the headline figures as badly as the last quarter. Long term they need to stabilise revenue but this seems to be a US-specific problem, I wonder could they outsource US management. That would be a useful move!

[geng] 15/7/2005 19:11

Looks like things are moving states side. some pretty big buys going through and up 6%.

no smoke without fire

[yellow_snow] 13/7/2005 18:08

I'm getting a bit more interested in what other territories they may sell since looking at the operating losses per segment, the Americas lost around 18 million dollars last year and 5 million of that was from Canada which only had 36 million of revenue. Thats nearly a quarter of the operating loss on around 6% of the Americas revenue. And it sold for nearly 40% of revenue. Given that all of the revenue loss last year was down to the US (13%) and that the Europe + Oz revenues were flat (and operations actually made a small profit if you ignore the goodwill write-down), I'd expect that any other disposal (since it won't be the US!) will be in the non-US element of the Americas. If these operations were to return a price worth a similar fraction of revenue then we would be looking at a very healthy scenario for the share price as revenues of 1233 million overall don't require a large fraction to be multiplied by to justify a capitalisation of just over 100 million. Especially when you consider that cash is 100 million or so and debt is 240 million or so, with only 64 million maturing in 2008. It would be nice to get another indicator via another disposal prior to the results, but its unlikely I suppose.

[yellow_snow] 13/7/2005 14:54

Early signs of a recovery after yesterdays drop of 6 cents in the states, hopefully it will hold out.

[yellow_snow] 11/7/2005 20:55

Up to 1.74 in the states on volumes not as high as the last few days but still respectable. With another disposal or decent results in August this would be through $3 and heading over 50 p here easily.

[fund1] 11/7/2005 20:14

Another nice rise today, on a definite breakout!

[fund1] 09/7/2005 01:04

Nice steady rise, thats what I like to see. I know you guys like the other thread but the title needs updating. The graph is looking good.

[yellow_snow] 08/7/2005 18:40

Volumes have been very large in the last few days in the states and at the moment its at 1.72 which equates to something like 24.5p with no sign of a let up in the buying yet. Lots of multiple large volume buys going through which makes it look like an institution or two accumulating. This could just be the 4th July hangover fading and a reaction to the disposal and CFO news, in which case any positive news in their next results is going to send this back above 40 p I'd reckon with bad news setting it back to the 1.20 - 1.50 range (= 17-20 p), so probably a good time to add if you aren't in. Ideally I'd wait until the results come out but on this sort of buying the ship may have sailed by then. Long may it continue.

[bertybassett] 07/7/2005 23:53

What on earth happened today, some poor sod selling on that nasty spike down at 17.5p then it jumps up! A very erractic day and someone at 4.00pm was topping up, looks like same person 3 x 50,000

[fund1] 05/7/2005 15:55

Danka Announces Hiring of Chief Financial Officer

- Services and software industry veteran to join company on August 1, 2005-

Danka Business Systems PLC (NASDAQ: DANKY; LSE: DNK), a leading independent
global provider of office imaging systems and services, today announced that
Edward K. Quibell will join the company as Chief Financial Officer on August 1,
2005. He joins Danka from Manhattan Associates, Inc. (NASDAQ:MANH) a global
leader in supply chain solutions, where he has held positions as Chief Financial
Officer, and Senior Vice President M&A and Business Process Improvement. Mr.
Quibell, a veteran of the services and software industries, brings a broad
background of financial and operationaloperational experience to Danka. Mr.
Quibell has had an extensive career in both senior financial and senior
operational in senior senior operational positionsworking with established, as
well as start-up companies in the U.S., Europe and Australia, including First
Data Corporation, CoreNet Services Inc., NCR Information Imaging, and the RTZ
Corporation.

"I am very excited to have Ed join Danka," said Todd Mavis Danka's Chief
Executive Officer, "we were looking for someone with demonstrated CFO leadership
skills, relevant knowledge of compliance requirements and extensive
international experience. Ed me all of these objectives. I am particularly
enthusiastic about Ed's operational background in the services and software
areas since these are both growth opportunities for Danka."

[yellow_snow] 05/7/2005 15:38

New CFO has been announced, industry veteran apparently, Edward Quibell. Seems to be well received in the states

[yellow_snow] 01/7/2005 14:02

Ok, 14 million on 36 million turnover for an underporforming business is not bad to my mind, if that scaled up to the full company we'd be over 50p so I think it'll go down well in the states. Nice to lose the 5 million loss too. I think its positive, other opinions?

[zedder] 01/7/2005 08:42

Wait till 9am and beyond. Maybe some delayed big buys.

[fund1] 01/7/2005 08:36

surprised no takers

[zedder] 01/7/2005 08:32

Disposal news is out now!!

RNS Number:3323O
Danka Business Systems PLC
01 July 2005

For immediate release 1 July 2005

DANKA BUSINESS SYSTEMS PLC

Danka announces sale of Canadian business unit

- Transaction completed with Canadian subsidiary of Pitney Bowes Inc.-

Danka Business Systems PLC (LSE: DNK; NASDAQ: DANKY), a leading independent
global provider of office imaging systems and services, today announced that the
company has entered into an agreement to sell the shares of its Canadian
business unit, Danka Canada Inc., to Pitney Bowes of Canada, Ltd., a subsidiary
of Pitney Bowes Inc., for a purchase price of U.S. $14 million in cash. The
purchase price is subject to a 10% holdback for a period of up to one year for
potential contingencies related to the transaction. The proceeds of the
transaction will be used for working capital purposes.

"We are very pleased to have reached this agreement with a company of Pitney
Bowes' stature and reputation," stated Todd Mavis, Danka's Chief Executive
Officer. "This transaction is an example of the progress we are making on our
strategy of exiting markets where we have not achieved sufficient scale. While
we have worked hard and made progress in certain areas of the Canadian business,
we have not been able to reach profitability and we feel our efforts and
resources are best directed to our core businesses. I believe the business unit
is now well positioned for success, and when combined with Pitney Bowes'
existing operation in Canada, presents the potential for synergies and
profitability, as well as great opportunities for our employees and customers
there."

Danka Canada, headquartered in Toronto, provides imaging systems and services,
including copiers and multi-functional peripheral devices and related services
to customers in major Canadian markets. During the fiscal year ended on March
31, 2005, the subsidiary's revenues were U.S. $35.9 million, balance sheet gross
assets were U.S. $17.3 million, and it experienced a net loss of U.S. $7.7
million which included U.S. $2.7 million in restructuring expense.