Debts.Co.Uk Share Discussion Threads

[jtcod] 19/2/2008 16:36

And the £2.4m pa saving should hopefully cap cash outflow.

[alexacj] 19/2/2008 16:29

If I'd only waited 30 minutes....LOL!!!!Agreed JT seems a good deal....the excess funds will make the company debt free itself!! :-)

[jtcod] 19/2/2008 16:05

That is a superb deal imo. The management, despite DETS being on a ridiculously low PE, have secured further funds at a 2.5% premium to price in a credit crunch and on terms of acquisition that shows zero dilution of earnings and still leaves £1.5m in cash. The majority of the acquisition business is in Scotland, where the current industry problems do not exist.

At the same time they are saving £200,000 per month from a one off £800,000 cost, though there may be some more costs on top of this for finishing the job of cost cutting.

This is positive news imo particularly also following the 190 signatures from the industry on future guidelines. Though I would like to know the fine print of the agreement going forward.

[alexacj] 19/2/2008 15:14

I thought that DETS had their AGM this morning.......we have had no AGM statement and in fact last year we had a trading update at the end of January.....nothing this year!!!!!!! Mmmmmmmmmm :-(

[alexacj] 17/1/2008 08:33

Excellent trading update from Fairpoint today.....looks like the market has turned with a lot more forecast to come!!
Further confirmation of this-:

[alexacj] 09/1/2008 10:54

Very true JT......and I like your thoughts on buying the debt from the banks.....would prefer that they just pay the banks per lead as opposed to "owning" the debt....again a little like credit hire.......!!

[dasv] 09/1/2008 10:25

and I've been filling my boots with RRS, CEY and PHAU. I expect sterling to devalue and the dollar to remain weak this year.

[jtcod] 09/1/2008 10:24

Hi Alex
It's better than credit hire imo because the insurers had a vested interest in stone-walling until players went bust because they already had the money and didn't want to pay it out. With the banks, the boot is on the other foot. They want the money back and they have a vested interest in working with the debt companies in order to facilitate that as early as possible. The alternative for the banks is to sell the debt on at anything down to 10p in the pound. Banks these days are just lending machine's. They have no way of coping with what is about to happen in the consumer credit market. They need the debt companies imo.

Other options available to DETS management to drive the business is to start buying debt from the banks at 10-20p in the pound and collect it themselves. This can be very profitable if done well. Also, they could develop further the handling of company insolvencies, which will also likely go through the roof over the next 2 years.

Just some thoughts FWIW.

As ever all IMHO and always DYOR of course.

[alexacj] 09/1/2008 09:40

My own view is that 2008 should be the year of doom and gloom with the economy sliding along with house prices.......consumer debt has never been so high and with rising costs and diminished ability to refinance then there is only one way to go......."POP".......I see these companies operating very similarly to the way credit hire works with insurers....and if you look at HHR their share price collapsed when the insurers refused to pay and challenged the credit hire set up........agreement was reached much the same as we have now seen with IVA's.....once everyone stops panicking that the world is about to end and wakes up to the fact that a few co's will actually profit from this credit crisis....then I think we should have a good year.....I'm also holding BEG & INVO!

[dasv] 09/1/2008 09:10

"Seymour Pierce expects the new deal with creditors to knock profits in the year to July 2008 down to £2.2m, rising to £3.7m in 2008-09."

market cap about £11m

So Forward PE of 5.

Seems like value.

Happy to hold.

[naeclue] 09/1/2008 08:57

Positive write up in Investors Chronicle:



Now we really are doomed!

[william47] 07/12/2007 08:48

i got debt yesterday pi,s seem to have missed the whole point of the rns from clea.i chose DEBT because of shortage of stock there and they are up for sale .i can see 40-50p short term easy.

[currypasty] 07/12/2007 08:44

i thought the rate cut might have given us a boost this morning

[poggy pig] 06/12/2007 20:29

Nice one jailbird.

[jailbird] 06/12/2007 17:19

this is from CLEA's RNS today

[poggy pig] 06/12/2007 16:11

Posted by jailbird on the debt thread:

DRF Hails New IVA Protocol



O All parties agree on new IVA protocols

O Future secure for IVA as a debt management product

O Indebted consumers to benefit from secure new working arrangements

O All parties committed to work together for good of industry



The Debt Resolution Forum (DRF), representing 28 of the UK's leading debt
resolution firms, today welcomed the new working protocols agreed by an all
party committee on IVA's, which includes: DRF, British Bankers Association, The
UK Government's Insolvency Service and professional bodies from the accountancy
and insolvency practitioner industries.



The new protocol will enable severely indebted consumers to access effective
debt resolution advice and products such as the Individual Voluntary Arrangement
(IVA). The protocols follow a year of intense negotiations between all parties



Commenting, DRF chairman, Chris Holmes, said:



"We have all worked very hard to ensure that an equitable solution can be
reached. I believe it is now fair to say that the "creditor strike" has been
ended and that there will be an increasing flow of IVA's agreed as we move
through 2008. The agreement looks likely to come into force from February, but
we believe many on both sides will be working towards protocol compliant IVAs
from today.



"We have achieved an agreement to improve standards, increase transparency,
reduce process and allow greater access for debtors to this crucial and
effective statutory solution to financial crises.



"The real winners from this deal are not the banks, who will earn more income,
or the IVA providers, who will also benefit from this deal but is the UK's
society and economy, which we believe will greatly benefit from this move".



Speaking of the meeting, chair of DRF's standards' committee, David Mond, said:



"A key issue, that of creditor practices that limit access to IVAs was hard
fought - but there appears now to be a clear commitment on the part of the
British Bankers Association to the ultimate removal of hurdle rates and other
preconditions: I believe DRF members will do all they can to ensure IVA
proposals are compliant to the new protocol and to ensure creditor actions and
practices are accurately recorded to ensure things move swiftly in this area.

[dickdanbayne] 29/11/2007 12:32

Seymour Pierce have been saying it is a buy since it was IPO'd. I think even I could do there job, eventually I'm sure they will be right??? Mmmmmmm

[inkyrules] 28/11/2007 10:31

i hope you are right

[alexacj] 28/11/2007 10:21

Well I've just dipped my toe in the water here......with the current credit crisis yet to really hit the consumer and with IVA rates rising quickly....the only cloud of gloom over this market is that no one appears to have a handle on just how much these companies can earn from IVAs.....it will clearly not be as high as it was but with volume increasing even a standstill in earnings puts this stock on a p/e of 3.....so even if income halves....(which I don't expect)...it is still undervalued! Time will tell whether I'm right or not.....

[currypasty] 27/11/2007 16:10

Im still in... one of my worst buys off Seymour pierce... may come good in a few years

[0rb1t] 27/11/2007 15:59

Seymour Pierce reiterates buy today. Business levels at DFD seem to have recovered from their interim results.

[7kiwi] 24/11/2007 18:59

Perhaps you should try for an IVA and get business up at dets. ;)

[inkyrules] 24/11/2007 18:34

yes still holding this stock and waiting for a miracle, i bought my 1st holding at 2.06 and topped up at 1.75... will i ever get my money back???

[masurenguy] 24/11/2007 09:39

And you are still holding !!!

[inkyrules] 23/11/2007 14:52

How do you think i feel, i bought in at £2.06!!!!