Dci Advisors Share Discussion Threads

[qs99] 15/11/2016 14:34

some decent volume ....will hold on for next disposal update as IMO, another decent one and we will start to move through 10p as market revises its very low expectations IMO...DYOR...

[qs99] 15/11/2016 13:32

someone took 1m earlier...

[kev0856153] 15/11/2016 12:14

Tilton if you want to look at it that way then that's up to you but I think that is very misleading. I think the way DCI have presented makes much more sense to a shareholder.

"The Disposal was agreed at an enterprise value of €140 million which represents a 10% discount to the project's carrying gross asset value as at 30 June 2016"

[tiltonboy] 15/11/2016 12:08

Indeed, if the other assets are sold at close to NAV then we would see a nice rise in the SP, however Aristo was sold at a 70% discount, and the sale today wiped out 75% of the NAV of that project.

Some of the other developments have little or no debt attached to them, so the key to the shareholders getting a decent return hinges on the ability of the managers to shift those...but will they be able to shift them!

Playa Grande was listed as one of five core projects, and the fact that they have sold this at a fair-sized discount suggests that movement on the nine non-core projects is slow.

I applaud this sale, as the company is no longer a "desperate" seller, but I have huge concerns on their ability to sell the remaining assets, let alone at close to holding value.

[qs99] 15/11/2016 12:02

you are not wrong,but hopefully new NEDs et al can bring some discipline in that area to further help bolster the NAV...let's see

[sophia1982] 15/11/2016 11:51

The big issue with DCI are huge operating expenses and management fees.
Even if the value of the tangible assets can hold up, these items eat a large chunk of NAV month after month.
Just look at the P&L of the last few years and you see what I mean.
So the company would have a lot of value only if it was liquidated instantly.

[kev0856153] 15/11/2016 11:47

No! I was not. Nav down a bit but still multiples of current price. Last @ 29p. Surprised you did not expect big rise today given value of this disposal.what if the other properties are sold at same valuation? Or even 20% less?

[tiltonboy] 15/11/2016 11:42

A massive reduction in debt is certainly significant. I was pointing out that it had little effect on NAV which you seemed to be implying.

[kev0856153] 15/11/2016 11:37

I did not misread. Ev of disposal is 140m. I'm surprised u do not see massive reduction in debt as significant

[tiltonboy] 15/11/2016 11:27

Kev,

I'm afraid you have misread the announcement. There was E20m of NAV in the asset, and they got E5m for it, so a 15m write-down. It was a big chunk of debt paid off, but it has little effect on NAV.

[kev0856153] 15/11/2016 11:08

It's the sheer size of this disposal that is so significant. 140 mill euros is a really big chunk of the nav of 260 mill sterling. Surprised there wasn't a 50% marked up at open

[rambutan2] 15/11/2016 10:44

A disposal! Finally, albeit more a debt reducer rather than a cash enhancer, and at a 10% discount to nav. Also explains the Third Point resignations mystery:

[kev0856153] 15/11/2016 10:44

This disposal is a game changer and the market beginning to waken up

[qs99] 15/11/2016 09:18

Tilton you are correct, the play IMO is whether management can achieve sales to the degree of this one at a lower discount than what IMO the market is pricing in....even a 50% discount would see shares double IMO...DYOR etc..

[tiltonboy] 15/11/2016 09:16

Kev,

An asset is only worth what someone will pay for it, and the last two disposals show that the NAV is not necessarily a true reflection.

The shares have undoubtedly been held back by a large seller, but gauging a true value is difficult. I would be happy to see the price in double figures!

[qs99] 15/11/2016 09:07

looks well bought IMO....but DYOR....if market think the management team could start hitting decent disposal values and as de-leverages it is not a financially distressed seller, then even if it got a 20% discount to NAV, it looks materially undervalued at 6.75 on the bid! IMO! not for widows and orphans....as they say

[hatey] 15/11/2016 09:06

Sure there was a big seller last time there was interest. Same pattern quick buck
merchants all buying but mm's giving little impression of a overhang then later they
just sit and offer size as the price drifts back but for now that does not look the
case.

[qs99] 15/11/2016 08:52

may just start narrowing the risk profile of achieving lower values IMO and back the management more to achieve these sorts of sales....let's see...am in for the ride as surely management can't be that bad?! Financial backing/strength with each disposal also helps their sell case as not seen as fire sales IMO...

[qs99] 15/11/2016 08:50

market seems to like it IMO...

[kev0856153] 15/11/2016 08:41

tilton
Of course but this is a major disposal and is a major part of the NAV. The shares are 6p and the NAV is 5 times that.

[orinocor] 15/11/2016 08:38

How do you know?
They got close to the expected value for a resort in Central America which is suffering from the Zika virus. Most of the properties are now in Greece/Cyprus which won't have these issues.

[tiltonboy] 15/11/2016 08:30

Kev,

The market isn't asleep...it doesn't believe that the NAV is achievable!

Further write-downs an absolute certainty.

[kev0856153] 15/11/2016 08:22

The Disposal was agreed at an enterprise value of €140 million which represents a 10% discount to the project's carrying gross asset value as at 30 June 2016 and will result in a loss on sale of €15 million to be recognised in the Company's Financial Statements for the year ending 31 December 2016.


The market is fast asleep. The shares should be rocketing This is a great deal. Look at the net asset value. 28p

[tiltonboy] 15/11/2016 07:52

Another major asset write-down, but a chunk of debt goes with it.

Got to be worth 0.25p on the SP!