Digital 9 Infrastructure Share Discussion Threads

[fisternator] 06/9/2024 08:31

The elephant in the room is how to repay the £53 million Revolving credit facility due in March.

Cash call? honestly, I would not rule it out with this shower!

[williamcooper104] 06/9/2024 08:29

The problem with valuations is what you tell the valuer to base it on and what assumptions you tell them to make Red book values for real estate do at least have basic in built assumptions and basis so there's less wriggle room But even for more model based infra assets you can't lose >40% in a few months against a benign macro environment

[hindsight] 06/9/2024 08:19

Seem to remember they paid GS a lot of money for the Dec valuation

[williamcooper104] 06/9/2024 08:16

If we are charitable and say it's incompetence (and they've shown no shortage of that) then that doesn't change that management fees were taken on over inflated values and that those fees should be clawed back

[fisternator] 06/9/2024 08:09

Yep, turned out that this classic method of valuation worked again.

Keith must be fuming this morning.
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Fisternator 28 Mar '24 - 10:10 - 1859 of 2194 Edit
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Is it not the case that virtually no one on the sidelines believes the value per share here is 84p, or insofar confident that the bod could employ that amount from the aforementioned assets?
That is copiously clear by the lack of any interest in apparently tripling your money in two years.

I have the NAV when all is said and done and subtracting DGI9 managements lack of credible abilities at a 40p return to shareholders, if i get any more then i will be pleased.

Is this just plucking a number from the sky? Well yes! It remains faithful to the adage Half the Blue sky figures provided by a utterly something of the night Bod at DG19

[strathroyal] 06/9/2024 08:08

The MMs have had the share price around 20p since late Feb so NAV of 79p always seemed a fairytale and whether it's fraud or plain incompetence we'll probably never know. I'm in around 22p and don't see this as an opportunity to top up although I'm still hopeful of getting my money back.

[wshak] 06/9/2024 08:08

How much of this fall is due to new management coming in and wanting to protect their reputations?

I was worried that they would "kitchen sink" NAV and then try and look good by achieving it.

I agree that Triple Point fees have clearly been based on fictitious NAVs, however.

They must surely be sued?

[williamcooper104] 06/9/2024 08:06

The excuse of it being harder to fund growth capex suggests it's the other assets and not Acquivia that's taken the mega hit Will have to wait to see

[williamcooper104] 06/9/2024 07:57

Ditto I've taken multiple stop losses in this and last went back in at just a smidge over 20p The only rationale for a large value adjustment would be moving to net reasonable value and taking a hair cut for holding only a minority/non-controlling interest in Acquiva But that shouldn't have been anything like a near 47% write of Other than Acquiva there's not a lot of debt so that's mostly an asset write down of 47% Staggering

[williamcooper104] 06/9/2024 07:53

Oh and sorry but they are using the now lack of availability of finance to fund growth as an excuse for the value fall So how over the last 6 months has it become harder to raise finance It's actually become easier

[williamcooper104] 06/9/2024 07:52

79p to 45p That's fraud Pure and simpleThose management fees were obtained by fraud That's not a normal valuation move Note that the macro has improved between the valuations, so the like for like fall is likely even worse As it's not a quick wind up there's plenty of time to litigate

[salpara111] 06/9/2024 07:36

Well I think I'm going to take my substantial loss as I simply don't believe a word they say, they have even said there may be further revaluations.
I never imagined I would be so far under water when I only paid 25p!

[farrugia] 06/9/2024 07:21

it pains me but i also added 5k worth. I'm sitting on a big loss.

Original shareholders must be absolutely fuming - I would be furious if I were them and I would want all management removed.

[mrscruff] 06/9/2024 07:18

I have followed DGI9 for a while and I have added today. The discount is 60% and the NAV more accurate. The market hate uncertainty and any NAV update helps provide that certainty. Speculatively 30-40% upside.

[foetus in your brain] 06/9/2024 06:56

I've heard aquacomms and elio have been written down bigly and Arqiva not at all

[prokartace] 06/9/2024 06:44

The market reaction depends on whether they believe the NAV is now real and the expressions of interest in the assets reflect in the NAV

[ghhghh] 06/9/2024 06:44

Agree that the new BoD would be nuts not to take this opportunity to kitchen sink.

The non Arqiva assets must now be close to fair (as in realisable) value since being marketed but my concern is what % of the 45p NAV is now covered by Arqiva? Ideally I'd prefer Arqiva to be the most marked down asset

Will find out in next few weeks...

[tigerbythetail] 06/9/2024 06:25

Massive kitchen sinking by new board, blaming it all on the old board, straight out of the politicians' playbook.
Hopefully, the new board have now set expectations slightly below what is actually achievable, so that they'll be able to say "look, what a good job we did" later.
34p of imaginary value has been lost - I wonder what has been marked down so heavily. Arqiva? The Verne earn-out? If the mark-down is Arqiva, then the decision to buy it begins to look even more questionable. I wouldn't rule out fraud.
I agree that inflated fees based on the old false NAV should be repaid. No question about that.
I don't know how the market will react. Yes, the NAV has been slashed, but it's still more than double the current share price!

[donald pond] 06/9/2024 06:17

Any fees based on a ridiculously over inflated NAV need to be reclaimed from the manager. Anything else looks like fraud or negligence.

[spectoacc] 06/9/2024 06:13

Feel for holders (including myself, in size). The only positive is they're seemingly progressing sales, and the NAV is still twice the s/p.

Doesn't look so good if the offers come in at half NAV tho ;)

[chard1980] 06/9/2024 06:11

Huge cut in NAV.