De La Rue Share Discussion Threads

[james smith] 19/10/2014 22:29

You can't possibly have a sense of humour, you are far too boring.

[thewealthofsocrates] 19/10/2014 22:27

Maybe I've just got a GSOH. Lighten up.

[casual47] 17/10/2014 11:05

Socrates....I'm beginning to think you are behind the fake M Sutherland twitter account. You make equally bizarre points.

Do you even understand what DLAR does??

[thewealthofsocrates] 17/10/2014 10:38

Warren Buffet needs to double his money after the Tesco sell off.Will he be interested in a WB note?

[james smith] 17/10/2014 09:10

Well, this horse has picked itself up. Dusted itself down. The jockey has climbed aboard and will trot gently back to 700p. It might take a while, but it will get there.

[thehearse] 15/10/2014 13:41

Red, shut tight of course, but taking an occasional glimpse out of the corner of one eye.

[redartbmud] 15/10/2014 13:22

th

Eyes wide open or shut tight?

red

[thehearse] 15/10/2014 09:02

Another 270 points I'm back even. LOL. I'm still cautiously optimistic, forget momentum trading or trading on fundamentals, my strategy is now "hold and hope". Naive I know but that's all I've got to hang onto at this time.

[casual47] 15/10/2014 07:05

Socrates....you are rambling and making no sense.

The issues at hand for DLAR are its recent profit warning, questions around its management team, overcapacity and resulting shrinking margins on the contracts they are bidding for. Oh and also a possible demotion from the FTSE 250.

Let's see what the new CEO will do to address these issues.

[thewealthofsocrates] 15/10/2014 00:58

Why did the bitcoin take off?-Anti-state anarchists don't want the value of their pay controlled by the state.-Drug deals & other illegal activities need anonymity.-Capitalist investors saw an opportunityWhy did it fall?-Wallet & exchange hackers-Government bans made it more illiquid -Chinese & US traders cashed out bitcoin & bought US & European bonds when Russia spooked the bond markets.US & UK yields are down because QE drove up the treasury prices & current events have spooked the bears into buying bonds.Pricey bonds means Europe won't be able to afford to buy them back for a while & they'll have to pay off the interest.The oil price will be low until China starts buying more. The ME, Ukraine & Ebola will send it up straight away.When the oil price rises, Europe will be forced into QE sooner rather than later.

[thewealthofsocrates] 14/10/2014 23:38

Over the last few years the oil & commodity prices were gradually riseing due to growing demand from a growing population. Oil & mining companies who were exploring demanded more bank loans made possible by QE.Those loans inflated oil & commodity prices further so that costs were covered.Thoses O&C prices drove wholesale costs up which drove up retail prices.Retailers were losing money due to inflation.Wages stagnated because of this, but retailers they were obliged to pay a minimum wage & workers began demanding a living wage.How did the retailers manage to stay afloat?Ingenious accounting schemes that avoid up to 100% tax!The US & UK are now starting to slam down hard on these practices which is easy when accounts are digital.How will large companies respond fo this & maintain liquidity?How would a drug baron or mafia kingpin respond?They'd deal with real physical paper CASH!

[casual47] 14/10/2014 23:16

Socrates, sorry but I don't buy it.

Besides....inflation keeps on dropping, parts of Europe are now actually in deflation. Nobody is spending more on goods and services at the moment and on top of that those goods and services are getting cheaper because of it. Banks are still reluctant to lend to businesses or people and banks are still hogging money due to post-crunch regulation.

I hold DLAR but QE is not increasing the money in circulation.

Here's an interesting article on the topic:

[thewealthofsocrates] 14/10/2014 22:34

Causual47: QE creates electronic money in order to purchase government securities like short & long term bonds from central banks.The act of QE devalues the currency & so PPP goes down when importing but it reduces national debt. Bond yields go down, but banks now have more liquid assets that they can lend out at low interest rates.When rates are low, people will take advantage & take out more loans or use 0% credit cards,etc.More money available to the average Joe, means they'll spend more on goods & services.Some of the workers who want to avoid the taxman or card processing charges will insist on cash as payment for services or goods.When you devalue currency, you devalue manhours & workers will want more of that currency to pay for the same goods or services.Those workers that want more currency will want more cash in the form of bank notes.

[james smith] 14/10/2014 17:53

contrarian2investor

This business is never going to be allowed to be taken over. de la Rue have access to people in the Finance Ministries of the majority of countries in the world.

It isn't for nothing that de la Rue was once thought of as a branch of MI6.

[hvs] 14/10/2014 17:52

As their profits guidance no doubt just proved.

[contrarian2investor] 14/10/2014 16:50

Closed up 2% at £5.04p, that is the first close above £5 since the DLAR sell-off began last month.

Whilst I agree that DLAR is vulnerable to a takeover. I think it is unlikely before the new CEO shakes up the company and maximises its appeal to any predator. c2i

De La Rue beats stiff competition to win licence to print Britain's banknotes

[thehearse] 14/10/2014 13:52

That's the bit I don't understand about the current valuation. Can you imagine how much it would cost and the elapsed time it would take for an organisation to get permissions/licenses to print the money for a state. That's why at the value DLAR is today it's got to be a takeover candidate.

[quepassa] 14/10/2014 13:32

It is interesting to read the actual News Release from the Old Lady yesterday confirming the new 10 year note printing contract with De La Rue. - On this News Release, there is a short paragraph ( note. 4) saying there are over 3billion notes in circulation and that over the last 5 years 6.1billion notes were printed to meet GROWING demand



There is also a link to the original tender contract which clearly shows that the estimated value of the contract is a cool £1 billion (+vat) over 10 years.



Even if De La Rue did have to sharpen their pencil to a very competitive price to secure this highly prestigious contract, we are talking nonetheless about an extremely high value deal and a contract of gilt-edged undoubted security and cash-flow for DLAR for the next decade.

ALL IMO. DYOR.
QP

[wylecoyote] 14/10/2014 12:36

However, joe bloggs on the street is being more savvy and wishes to settle their bills in cash though.