Debt Free Direct Share Discussion Threads

[sat69] 28/6/2007 20:19

aatw

We can never be sure if they were sells or buys. I often buy shares which are reported as sells, and I guess nobody really ever gets to know about it.

I'm glad you feel safer with your DFD holding. As for me, I was expecting a rally pre results, and a very strong bounce after the results; I thought they were excellent. How many companies double their profits, double their dividend, announce a share buyback programme, and see their shares plummet! Something is amiss. I believe there is just a share overhang at the moment with BofA continuing to reduce their holding. Once that is out of the way, we can expect a strong recovery in the share price

Like yourself, I believe the fundamentals look sound, so it's only a matter of time for the share price to get back to where it should be.

For the record, I never short stocks :-)

sat

[up2day] 28/6/2007 20:15

Bought in here today for second stint hopefully it is as fruitful as last time, unfortunately my buy not big enough to make difference to price, though seems 90% of trades on volume were buys but, still down.

[aatw5295] 28/6/2007 18:22

Sat69,
Were they sells or buys?.Another minor drop but were still heading the wrong way.
In light of the DFD comments post results, whats the odds on p carter talking up debts move into scotland via acquisition. It just looks like there playing catch up and for me my holdings in Dfd feels safer than my Debts holding.

So are you shorting and bailing out at your £3 target or on for the ride.

[sat69] 27/6/2007 18:12

Two very large after hours trades - 350K and 361K. ADVFN have them reported as buys, but my feeling is they were sells. Either way, we are in for another interesting day tomorrow.

[sat69] 27/6/2007 17:17

Another high volume day. Expect an rns from BofA in the coming days, indicating further reductions in their holdings.

[sat69] 26/6/2007 22:44

Mike - You are absolutely correct. I made the error of believing that todays rns was linked to todays transactions. No doubt with todays heavy volumes, B of A have disposed of further shares.

[mike61] 26/6/2007 22:38

Sat69 - the sale of about 100,000 shares by Bank of America seems to have taken place a week ago, on 19th June - not today. You may have other information.

[mr.oz] 26/6/2007 19:44

Nervous wait for Debt Free Direct

Created: 26 June 2007 Written by: Oliver Ralph
A quick glance at these results would suggest that little is wrong, but behind the profit growth lie two profit warnings, and a major structural challenge. Individual voluntary agreement (IVA) specialists like Debt Free Direct broker agreements between indebted individuals and their creditors, and trading conditions are tough, because rising competition is pushing up advertising costs, and creditors are rejecting more IVA proposals.

Discussions are under way between the IVA industry and the creditors about how to move forward. A reduction in the fees charged by the industry is likely, although chief executive Andrew Redmond hopes that the impact will be offset by rising case numbers. Until the negotiations are complete, the company won't provide financial guidance for this year.

But Debt Free Direct has underlined its long-term confidence with the £10.9m acquisition of rival IVA provider Clear Start UK. Clear Start will add around 200 cases per month to Debt Free Direct's 460. More importantly, its management originally worked for creditors, so it has a good working relationship with them. The consideration will be paid in shares, but Debt Free Direct will buy back a similar number of shares in the market, ensuring that shareholders are not diluted at what management considers to be a low price.

Following a change in accounting treatment, forecasts are under review.

[sat69] 26/6/2007 16:48

Having re-read the results, they were certainly very strong, and the divi has also been doubled. The reason for todays fall was the heavy selling by Bank of America, who still own a massive 6.9% of the company. Perhaps any further sales on their part will be nullified by the newly proposed share buyback programme. Clearly, the company believe the share price is so low, it is in the shareholders interest to be buying back shares at these levels.

If Bank of America do not return tomorrow, we should see a reversal of todays falls as tomorrows press will undoubtedly put a +ve spin on the results.

[sat69] 26/6/2007 13:09

Nevertheless, as results came in ahead of expectations and there was a positive statement for the future, I expeced a 10% gain today in the share price I still believe we will see £3 in the short term, as the company is still way undervalued owing to the sector being out of favour.

[alexx] 26/6/2007 11:28

The problem with the share price is not the results but the prospects surely, as had been stated above several times

[sat69] 26/6/2007 09:10

Excellent results with a strong positive outlook. Puzzling the share price has dropped from the opening. Still, I remain confident about thhe company, and will continue to hold.

[tsigoloroh] 26/6/2007 08:02

could hit 300p in a day or so, imho

look at the level of detail compare to DEBT's statetement which was all waffle.

[mike61] 26/6/2007 07:59

Although the figures are up as anticipated for the year, the trading at the end of the period and into the 2008 year seems to be down.

IVA runrate seems to have dropped from 536 per month in the first half to 386 per month in the second half, whilst advertising and other costs have increased. Market share is down, showing a greater number of competitors.

With the uncertainty in the market due to the attitude of the creditor banks, and the bad publicity, DFD is facing a reduction in new business turnover with fees being linked to performance, rather than the current fee situation where the IVA provider takes their money upfront.

Whilst this is being sorted out, DFD will rely on their bank of 10,000 IVA cases which will provide, I estimate, some £8mln/£9mln per annum for the next 4+ years. This compares with about £24mln for the IVA business in the current year, i.e. a substantial drop.

Obviously, some competitors will disappear, and, once the creditor situation is sorted out at some time in the future (maybe in 2008), DFD should remain one of the main players. Today, they have announced they have cleared one of their competitors, Clear Start, out of the marketplace by acquisition. But this means they have taken on debt to do it.

[sat69] 25/6/2007 16:35

Nerves ahead of tomorrow. Good luck to all fellow longs - I believe we will hit £3

sat

[aatw5295] 25/6/2007 15:35

Do you not think the previous results of other debt companies has already been factored into the share price of DFD, debts co uk etc etc
IMO its the simple case of too many shorters for the share price to gather significant pace. Are the investors to nervous to wait for a solid return or do they have too little faith in the comapany and indeed sector and therefore take profit when its available.
Must admit todays drop is a bit of a suprise though, intraday or not.

needsless to say IMHO

[sat69] 25/6/2007 12:05

The share price often falls significantly intraday, and then recoups by the day end.

[atmj] 25/6/2007 10:42

no good news yet!!

[amd7000] 25/6/2007 07:52

should be another nice rise today as good news is expected tomorrow.

[sat69] 22/6/2007 18:01

Thanks Nobel, That might be the reason behind todays gains - Up another 5% to 278p. - My £3 target for next week is now well within sight.

[nobel2005] 22/6/2007 16:19

Gents, l don't hold this one but fyi..tipped on p21 of shares mag as defensive high risk buy.good luck.

[sat69] 21/6/2007 17:41

Nice rise today - up 4% to 264p.

[sat69] 20/6/2007 17:47

Back over £3 next week.

[eburne1960] 20/6/2007 17:43

BERRY786 - I am a holder of INVOCAS & tend to agree with you - also, take a look at Begbies' announcement today re expanding in Scotland - can't help feeling they could make a grab for Invocas if their price stays depressed, only IMHO of course....