Danakali Share Discussion Threads

[yellow_snow] 17/9/2005 11:18

Hi zedder, been in and out of this one a few times myself, including some 9p buys that I got out of at 35p and some 60p buys that needed a quick retreat. I think my first buy was at around 2 pounds in the 90s which actually turned out profitable. Averaging 22 p at the moment and waiting certainly for post-40p before thinking about reducing.
The Imagistics buy certainly gives a very positive benchmark for value as an acquisition, especially when combined with the $15 m gained from the Danka Canada sale. Both of these suggest a much higher valuation for Danka, lets hope the positive momentum continues.
The Yahoo board has a few old hands that are worth reading, duckduffer, dfwtracker and GFLAKE etc. , but theres so much dross on there that I rarely find it worthwhile. Just needs another set of results showing further signs of recovery for this to head to $5 and nearer 60-70p.

[php] 17/9/2005 09:52

Yesterday was a good day to trade!

[zedder] 17/9/2005 09:49

The spread was 30/31p when I bought yesterday and I actually paid 30.9p. I've seen worse spreads than that!

[php] 17/9/2005 09:45

zedder- I only wish that dnk wasn't so illiquid and that the spread was tighter!

[zedder] 17/9/2005 09:44

Hi yellow_snow,
Yes my timing was good yesterday, but I've been around this share for some time now for exactly the reasons highlighted in the post above by someone on the Yahoo BB. DNK has huge turnover for it's share price and if it can start to turn a profit again the price should rocket. Over the last 2-3 years the company has put a lot of time, effort, and more importantly money into ensuring this will happen.

I currently hold 18500 shares at an average of 44.9p. My buys have been as follows:

05-Mar-04: 3091 @ 0.6574
14-Jul-04: 4209 @ 0.59
12-Aug-05: 6700 @ 0.347
16-Sep-05: 4500 @ 0.309

My buy on 12th Aug had been looking a bit mis-timed. However, yesterday was a classic example of what can be happening in the US while we can't trade in the UK. It will probably open at soemthing like 34/36p on Monday.

This share has the potential to go to 80p+

[zedder] 17/9/2005 09:37

This is from the Yahoo board:

I agree Duckduffer, the announcement of the OCE acquisition of Imagistics will probably continue to have a positive effect on Danka's share price as it draws sharp attention to what a strong takeover canidate Danka is.

Oce ageed to acquire Imagistics for $754M including Imagistics net debt of $140M. Imagistics $600M annual revenue stream is only about 50% of Danka's $1.2B annual revenue stream. With only 64M shares o/s Danka's current Market Cap based on todays close of $2.60 is only $166.4M. When Danka's Total Net Debt of $140M is added to the $166.4M Market Cap it equates to a current Total Enterprise Value for Danka of only $306.4M.

Oce is buying Imagistics wich only generates 50% as much revenue as Danka for $754M and Danka's current Total Enterprise Value Based on a $2.60 stock price is only $306.4M.

Even when you add $300M for Danka's preferred shares the total for Danka is only $606.4M or only about 80% of the $754M that OCE is paying for Imagistics $600M annual revenue stream wich is only half of Danka's $1.2B revenue stream.

[php] 17/9/2005 09:21

Yesterday's rise was on the back of one of Danka US competitors' IMAGISTIC, being acquired by OCE. It is worth checking out the message board on yahoo finance (USA DANKY) although they do seem to go of topic alot- but heh!!!

[yellow_snow] 16/9/2005 21:42

Welcome to the party zedder, exellent timing, I was a bit worried that we'd need the next results out to get back to 2.80 but it looks good for it now!

[miata] 16/9/2005 21:40

Wonder what the reports said.

Date Contributor Author Title

16-Sep-05 ValuEngine, Inc. N/A ValuEngine Quantitative Research Report for DANKY: Forecasts, market valuations, comparables, quantitative summary and financials. Based on proprietary Academic Valuation models.

15-Sep-05 KRS N/A DANKY Investment Climate Report Sep 15, 2005

15-Sep-05 Morningstar N/A Morningstar Stock Data Report: DANKY

[zedder] 16/9/2005 21:03

Held $2.60 to the close. Volume over 2m, which is only the 3rd time it has achieved that in 2 years!

[zedder] 16/9/2005 20:48

$2.60! Looks like the levee has gone for the shorters!!

[zedder] 16/9/2005 20:16

Through $2.50 and volume increasing all the time. Somebody is buying in big!! Nice charts above Master RSI. We could do with them in the header.

[zedder] 16/9/2005 19:26

$2.46 and climbing in the US now. That gut of mine was spot on again!

[miata] 16/9/2005 17:47

Interest sparked by KRS reports just out :

[master rsi] 16/9/2005 17:33

Some charts of the US stock doing well today

[zedder] 16/9/2005 15:13

Bid up 1p immediately after that trade.

[zedder] 16/9/2005 15:11

Just grabbed another 4500. Good gut feel on this again after the recent action in the US.

[zedder] 16/9/2005 15:05

Looks like another good day in the US today. Already been over $2.30 once and volume already high for the first half hour.

[blockbuy] 16/9/2005 10:13

morning all........looks like a bounce off the handle............could break out strong if confirmed.................

you'll all be happy then..................

anhow off topic and while your waiting..........

4 broker upgrades for AXO this week....continued upward movement of the broker targets..........(now 260-285)...............

nice..................

bb

[snod grass] 14/9/2005 13:32

Trying to find news and information on what DNK is up to over the pond. Is like trying to find God!

Anyone help?

[zedder] 13/9/2005 18:54

Showing some life again in the States. Volume already over 1m shares traded for the day (which does not occur often) and price back over $2.10. Should see a mark up at the open tomorrow.

[latifs100] 08/9/2005 22:22

tru.. i bot at 32..

[rabbrooks] 08/9/2005 20:08

As i have said previously ,Gb investors are the last to know as we don't matter a Blair damn. The Americans dictate as they are wont to do.

[snod grass] 08/9/2005 09:25

WHY?

ANYONE KNOW?

[blockbuy] 05/9/2005 17:17

evening all.......chart seems to be creating a cup and handle.............

nice............

;-)))))))))))))

off topic as your waiting for more news......

AXO interims in the am........take a butchers ..............growth company ... pays a divi too.........continuous broker upgrades.............

dyor etc........

;-)))))))))))))))