Digital 9 Infrastructure Share Discussion Threads

[f56] 06/2/2024 18:17

The suggestion to sue the board doesn’t seem a plausible one to me. Presumably the board elected Triple Point to be manager of DGI9. I have been looking at the performance of all other Triple Point investment vehicles that are listed in the UK and it appears to me that there is a striking similarity in poor share performance across the whole range of investments that are managed by Triple Point. One might assume that the board has therefore been gullible and somewhat stupid in choosing such a manager.

[ec2] 06/2/2024 13:20

My experience of these type of events is that periodically as assets are realised and cash becomes available, a proportion of your holding is bought back for cash by the company until your total holding is redeemed. Potentially first redemption payments could start trickling through later this year but this obviously depends on the speed at which assets are sold. Obviously these are just my thoughts and we await to be updated by the company as things progress.

[daveoz1] 06/2/2024 11:51

spoole5: Given the NAV, hopefully the projections are not wholly over optimistic. However, I note that the market seems to agree with you - share price down to 23.5 today at 1150hrs..

[daveoz1] 06/2/2024 11:48

EC2: Many thanks for your reply. Presumably at some stage we will be offered a certain price for our shares, take it or leave it.

[spoole5] 06/2/2024 11:06

Hilarious the over optimistic projections on here as it follows a path to zero!

[xxx] 06/2/2024 01:43

Whilst it is not in shareholder's interests, it is somewhat surprising that no one has come forward to sue the board. This is a car crash.
Fully expect the directors to make politcal donations, receive peerages and pop up on other boards.
The chairwoman sounded like she has already passed on.

[ec2] 05/2/2024 21:12

daveoz, I am probably being overly cautious in my assumptions, but I note that the Verne earn out payment of up to USD135m is linked to financial targets for the year ending Dec 2026. There is also the deferred sale of Arqiva to consider. Having said this Liberum when recently putting together a very cautious sum of the parts value of 48p per share, assumed no earn out payment for Verne and a zero value for Arqiva. You could therefore get out at this sort of level much sooner. My experience of these kind of wind downs is that if you are happy to wait right to the end, the eventual payback can be very profitable.

[alan pt] 05/2/2024 20:00

Publicly listed data centre operators have been around for at least 30 years and there are large global players many times DGI9 size, so it's certainly not a new concept

[daveoz1] 05/2/2024 19:16

EC2: I am no expert, and I'm puzzled. You say "triple your money over 3-4 years". It's not going to take that long to wind up the Trust is it? Surely Digital 9 Infrastructure and its shares will be history by then?

[williamcooper104] 05/2/2024 19:14

Yep that plus the actual management of the assets is done by the management teams attached to those assets

[jaknife] 05/2/2024 19:10

f56,

It's not that difficult. It simply requires someone to competently run a sales process. Most of the work will be farmed out to an investment bank to prepare presentations and to then shop the assets around to various parties.

JakNife

[f56] 05/2/2024 18:58

I think this is the point WC was trying to make. If you want a wind up you really need experts available to wind the company up. The problem is with a relatively new concept such as data centres etc. you have to ask the question how many experts are there available to actually wind such an entity up? An issue like that may cause a problem with the wind up costs.

[alan pt] 05/2/2024 16:16

If you had a realisable 60p and assume that it resets to about the same discount level as CORD, that gets you to a share price of around 37p

Probably only gets to that level once Verne completes, but would give about a 58% gain on current price

[marlint111] 05/2/2024 16:08

The lady was clear on the call- they are not resetting to relisable value- but NAV as per IFRS which would be on a willing seller / willing buyer basis.

She emphasized that we shouldn't rely on this as a basis for disposal price- because there are lots of other factors that come into the price someone's actually going to pay (not least DGI9s distressed state)

[tigerbythetail] 05/2/2024 15:59

Yes, I think the promised trading statement at the end of the month will be the big "kitchen sinking".
I'll go for a reset of the NAV to a "realisable" 60p. (I'm ignoring the Verne earn out - if DGI9 can't reveal the conditions of it that probably means they are unachievable).
Which is - simultaneously - an absolutely awful result for long term investors and equally (IMO) an opportunity for anybody new looking at this share.

[f56] 05/2/2024 15:50

It’s not surprising the board look depressed. They need some target to aim for and they don’t actually have one. Even the staff of well run companies get depressed with interest rates at 5%. Saying that, barring a recession you should be able to make a return on the current share price.

[rambutan2] 05/2/2024 15:31

Realisable value shown in next nav, yes, except for Arqiva perhaps. As is not actually up for sale at the moment?

[ghhghh] 05/2/2024 15:19

Completing the Verne deal is top of the wish list and they made very reassuring noises here.

And Arqiva performing okay? Hold up is the share structure?

Otherwise everything subject to the valuation update, think they said end of this month?

This will be the re-setting to realisable value...

Best guesses re valuation ignoring Verne earn out? I'll say 65p.

[ec2] 05/2/2024 14:37

The positive out of today's call was how they managed to further trash their own share price ...Was able to pick a load up at 23.35p as a result. Some may think I'm mad, but as they say... when there is blood on the streets... The various number crunchers have conservative sum of the parts calculations ranging from 48 to 85p per share. I recon it's possible to triple your money over 3-4 years which wouldn't be a bad return. I bought outside of my ISA just in case they delist the shares at a later date making them ISA ineligible which would force a sale at potentially the wrong time.

[alan pt] 05/2/2024 14:09

Honestly, I do wish they would just keep quiet. Every announcement they make just sends the price in one direction...

[marlint111] 05/2/2024 13:12

If I was looking for positives- I'd say they were upbeat about the completion of the Verne deal- doesn't sound like there were any question marks there.

[daveoz1] 05/2/2024 12:47

Tiger, I agree. No actual shareholder's question shown. As for live feedback, absolutely nil! The other board members shown did not say a single word - and I have to say they looked rather like a bunch of depressed down-and-outs picked up off the street! Did she mention we had to wait until 2027 (!) for some item of information? It wasn't that easy to hear her.

[marlint111] 05/2/2024 12:45

Yeah- nothing really useful- which is to be expected- they can't really release anything market sensitive.

But didn't fill me with confidence!

[tigerbythetail] 05/2/2024 12:30

Webinar useless. Just corporate drivel and waffle. Not impressed.
Can I have that 30 minutes of my life back please?

[tigerbythetail] 02/2/2024 14:46

I also wonder how much selling there still is to come. Mr. Market can be quite irrational, and even hysterical, at times like this.
I believe a lot of the selling is mandate-driven. The removal from FTSE 250, the falling share price, the big discount to NAV, the cancelled dividend etc., these are all events that trigger automatic fund selling. That selling is both risk and opportunity for us.
It's hard to believe DGI9 can go lower than the current share price, given the worst-case sales value of the various assets DGI9 owns. But, yes, it can.