Dhir India Share Discussion Threads

[hugepants] 02/10/2011 18:47

Thanks for the AGM writeup Enviro. Do you have any information on the biscuits?

Your comments coupled with statements in the final results, such as "..The Board has decided to seek to accelerate the process of returning value to shareholders...", leads me to suspect they are trying to sell the SPVs themselves now rather than disposing of individual assets contained in them (like Project Cygnet).

Did you get any feedback on a possible share buyback now they have authority? I think I'd prefer a cash return. Some stocks I hold are returning cash in stages while the company is being liquidated (eg INRE) so that could happen here especially since the disposals are going to take time.
And interesting they are a closed period.

[envirovision] 01/10/2011 18:35

Daytraders its a good question, with things up in the air I doubt they would be able to promise some cash now but don't see any reason why not later. I doubt the full 5M would be required to service the current investments and/or legal fees. I don't see why say 15p could not be returned. Perhaps that could be a proposal for the next agm !

Must take a look at the register later and see if I can work out who the seller is.

[daytraders] 01/10/2011 18:23

envirovision - thx for going to the AGM and reporting back, 1 question thou, did anyone ask where the cash is held ?, and could they not give most of that back now at least, as it seems if there going to wind up DHIR eventually we might as well have the cash now less on going fees etc, either way i see at least 200% profit back from these prices, if it takes a few years it is still a great return, would take 100 or more years to get that back from a bank interest :)

[envirovision] 01/10/2011 18:10

Well my thoughts were lets see what's going on behind the scenes for this closed period, but your right it could take 3-4 years to wrap all this up I guess which explains the price but I would hope for 75p worst case imo.
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No im not on IOM sky went over there especially for AGM as I have quite a bit of money tied up in this stock.

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Also meant to add at the end of the meeting the two directors seemed to think I would be pleased with my investment, so lets see.

[moreforus] 01/10/2011 18:09

It trades at a 98-99% discount to non cash assets..33p cash and 92p (ish ..without going back to the results)..so the Market at 34p bid gives 1p for assets.

[tiltonboy] 01/10/2011 18:00

Thanks enviro, unfortunately it confirms my fears, but that is why the shares trade at such a large discount to assets for. I think we are in for the medium term here, but I would be content with 50p as we stand.

The holding in HALB Noms is indeed ours.

[moreforus] 01/10/2011 17:58

Looking forward to my 125p (-;

[skyship] 01/10/2011 17:56

Bravo Enviro!

Are you living on The Isle of Man?

[moreforus] 01/10/2011 17:51

That's excellent enviro..

Many thanks for attending and sharing the feedback it looks like at some point we will be getting cash, just a question of patience.

[envirovision] 01/10/2011 17:43

RE: AGM.

I arrived on time to discover I was the only shareholder there. From Dhir John Bourbon (chair) & Arun Singh, also present the secretary & KPMG. Since the Chairman Mr Hambro was missing John thought it was protocol to wait 15mins prior to opening agm which gave me 15 mins to talk to everyone. I think they were impressed that someone had actually bothered to turn up. I began by clarifying the progress with project Cygnet. As you will be aware there is 2.15M received in the SPV from an acquire of the plant and machinery, separately an interest from two separate parties was received for the land and buildings of which an offer has been accepted for 12.42M and a deposit (5%) of 0.62M received in the SPV for this.

I asked how easy was it to get funds out of these projects. Apparently not easy at all and they are finding it very difficult. For example a company could go bust and have its staff occupy the land and then its a long complex process to move everyone on. The SARFAESI act was brought in to try to speed up some processes but seems to have failed. Therefore the board have given notice to the management company with a view to implementing a new realisation strategy.

The easiest way to appropriate funds its to sell the SPV as a whole and obtain court permission, clearly that's not the case with project Cygnet as there is two transactions. Apparently the plant still needs to be shifted off the property otherwise the bidder of the land will not complete. Apparently the purchaser is now unhappy with this delay and have given Dhir to November to shift it (and I got the impression the board was trying to be proactive in this respect). Then after this court approval for appropriation. In general they thought 6-12 months was expected for the appropriation of fund of any of these SPVs in a court, but then how long is a piece of string. Arun explained he had little confidence in the indian court processes acting in a timely manner.

I asked how long for the rest, same thing again 6-12 months if monies were received. I also asked how they planned to return value from these realisations to shareholders. Apparently some of the larger holders have already been voicing their preference and so the plan is to return cash. So to my delight, it's most certainly not intended to re-invest any realisations.

The next question I asked and probably the most important for us is why did they think none of the directors had bought shares given the company was now sitting near cash. John Bourbon was keen to speak on this explaining he held a load of directorships and never held shares in any of them as he felt it was unethical and infact the mere 3000 of dhir he owned was an anomaly. I guess he did have a point since his business is compliance and regulatory consultancy but sadly in him answering this point, it did not address the missing other directors lack of conviction. Arun Singh also indicated he was in the same boat as John pointing out he only has 1 share.

However one interesting point did emerge in respect of directors buying shares, which is presently they could not if they wanted to do as in effect the company is in a closed period. I asked when this had begun or when it might end and they were unwilling to answer that. KPMG suggested that perhaps that might be a question for the the brokers / nomad.

Also was able to get an updated share register which is always handy (I assume that HALB lot is you Tilton ?).

So anyway we went through the vote and resolution seven I explained I was against and apparently others had also done so, so it was dropped. (Personally I'm against any share being issued willy nilly with out good reason and I never trust companies who can allot tons of shares whenever it suits them).

Thats about it really, I came away with the impression they were a board who were willing to listen to its shareholders but bear in mind it was only two of them I met on this occasion. I don't think I've forgotten anything if anything else springs to mind will let you know.

[moreforus] 30/9/2011 07:35

Hi enviro...I was waiting with bated breath for the 2nd part !!!

[envirovision] 29/9/2011 21:32

Went to the AGM today, I'll give an update when I a few moments of time. Weather in IOM was overcast compared to the mainlands 3 rd day of the Indian summer. Good to see the results notified to stock market in a timely manner.

[moreforus] 29/9/2011 13:15

DJ Dhir India Investments plc Result of AGM

TIDMDHIR

RNS Number : 2117P

Dhir India Investments plc

29 September 2011

Dhir India Investment plc (the "Company")

Result of Annual General Meeting

The Company announces that at the Annual General Meeting of the Company held today, all resolutions were duly passed, save for Resolution 7 in respect of the authority for the Directors of the Company to allot equity securities up to such number as represents 10 per cent of the issued share capital, which was not passed.

29 September 2011

For further information, please contact:

Shiva Consultants Evolution Securities Tavistock Communications

[daytraders] 28/9/2011 12:40

im ok with my 39p buy a little while ago.

[moreforus] 28/9/2011 12:05

ok 37.9p paid on plus for 27k...

35.6p line gone?

[moreforus] 28/9/2011 11:40

ok who;s the comedian buying at 35.6p (-;

[moreforus] 28/9/2011 11:29

well someone did

i think the 35p is a buy too

[hugepants] 28/9/2011 11:28

I don't think you have to pay 36.5p. That's the online quote I got yesterday for 20,000 with TDWaterhouse. Instead of accepting it I phoned in a fill or kill order for 35.6p and it got done immediately.

[moreforus] 28/9/2011 10:45

and now 36.5p!!

[moreforus] 28/9/2011 10:16

seeing buys dribble in at 35.6p

so the market is saying the company has 33p in cash but those illiquid assets some of which are close to being realized are only worth 2.6p vs the book value of 92p....

even greek debt you are getting 80% or 50% if the new rescue plan is going to be agreed.....

[daytraders] 27/9/2011 22:28

yeh but they want to give shareholder value within 12 months and that was a while ago, i think there going to sale everything and give 100p+ back to us within the year.

[moreforus] 27/9/2011 21:52

Lol is it too good to be true???

There are a lot of stupidly cheap stocks out there

This is simply an extreme

[cyberbub] 27/9/2011 21:45

I can see that there is a substantial undervalue here, but surely the illiquidity is a concern? Yes it could lead to a sharp rocket, but then trying to sell out would be a nightmare too. And while India is by no means Tajikistan, and there is a rule of law, still it is a very bureaucratic country, and getting money awarded by the UK bankruptcy courts is difficult enough never mind India.

Just putting the cat amongst the pigeons here... :-)

[hugepants] 27/9/2011 14:09

enviro
I just copied that note 6 from the annual report ( now on the website).

I did read that about Lords Chloro Alkali but it only comprises 3p towards the NAV so its pretty much insignificant. They did value it on 3rd May. It may have property and plant supporting the value

"..In determining the valuation of the investment in Lords Choloro Alkali Limited ("LCAL"), the Directors have reviewed the quoted share price in the period from 1 January 2011 to the date of agreement of the valuations by the Directors, 3 May 2011. The Directors have also examined further factors, such as the level of trading of LCAL shares as well as the size of the shareholding, and have determined the value of the investment to be INR25 per share..."

[daytraders] 27/9/2011 14:05

Oh i see now, cheers