Dignity Share Discussion Threads

[trjones2] 06/11/2010 07:11

thanks rochy .i perhaps should of waited awhile before i bought,but i think over the next couple of weeks the only way is up

[rocheberie] 05/11/2010 21:34

trjones2

That's because your deal was traded on Plus, just put in DTY.GB in the trades for today and you will see your deal was the first today.

What was that spike this afternoon up to £6.695 and then all the way down again.

[trjones2] 05/11/2010 08:28

trade not showing

[trjones2] 05/11/2010 08:14

just had a dabble with 1404 at 6.49ish

[spudders] 16/10/2010 10:53

Has the return of cash on the 15th caused the share price to drop or is there something else going on.

[mavros] 29/9/2010 17:35

Thank-you eb1960 for that explanation which is the best I have seen on any board.

[eburne1960] 26/9/2010 19:27

Yes, the reasons for buying DTY are that it should steadily grow profits and dividends regardless of the economic situation, and it should be in a position to give back a proportion of your investment every few years. As it points out in the RNS, if you bought shares 6 years ago you would have had your initial investment returned to you and still have a holding worth twice the value of your initial investment.

[spudders] 26/9/2010 18:54

eb1960 thanks for your time and explanation. If I understand correctly there is no advantage of buying into DTY unless it met my criteria before the capital return was announced.

[eburne1960] 26/9/2010 17:13

OK, how about an example:

You buy 1000 shares @£7 now, total cost £7,000.

After the capital return, you will have cash 1000 x £1 = £1,000.
The share price would drop to £6 normally, so you would have 1000 x £6 = £6,000. Total value of what you end up with: £6,000 + £1,000 = £7,000.

But because of the 6 for 7 consolidation you will end up with 857 shares, the share price will rise from the theoretical £6 to £7 as a result of the consolidation, so 857 x £7 = approx £6,000. Plus the £1000 cash gives you £7,000. If you then used the cash you received to reinvest in DTY shares you would be able to buy: £1,000 divided by £7 = 143 shares. 143 shares plus the 857 you already own = 1000 shares - the holding you started with.

That's the point spudders, it is simply a return of a chunk of the business to the shareholders in the form of a cash payment to do with as they wish - you will still own the same proportion of the company you did beforehand. Obviously, this example ignores day-to-day market fluctuations affecting the share price.

[spudders] 25/9/2010 16:11

eb, thanks for your explanation and I see your point. I am still confused about this, unless the shares are trading at the current share price less £1 after the return of capital. I have not experienced this matter before so a bit baffled by the whole thing, I hope you can help.

[eburne1960] 25/9/2010 15:38

Spuds, think about it: c. 15% of the company's worth is being taken out of the company and given to the shareholders. Therefore the value of the company must fall by c. 15%. The share price itself will not move much because the number of shares in issue will be consolidated to take account of the return of capital. The IC buy rating holds whether you buy before the capital return or after, as if you buy before the return you will get some of your money back shortly afterwards.

[spudders] 25/9/2010 15:21

eb, If what you are saying is correct why would the IC give out a buy rating, unless they have their own agenda. I'm not so sure the current share price will end up 15% down, maybe 5% but there still looks like a good quick return, bwdik :)

[eburne1960] 25/9/2010 15:13

Well spudders, I would say there's no point in buying a share just so you can get 15% of your money back shortly afterwards, with the value of your holding going down by the same amount...........

[spudders] 25/9/2010 15:05

Cheers eb1960, Why are PI's not piling in for a nice short term % return, am I missing something. Also IC gave DTYa buy rating this week.

[eburne1960] 24/9/2010 20:29

Spudders - 8th October.

[mr hangman] 24/9/2010 11:01

Yes JonC & that lord gigglewick seem to follow me around everywere

[squash90] 24/9/2010 10:52

is it the jonC hope so????

[spudders] 24/9/2010 08:59

When did you have to hold the shares by to get the £1 return in cash.

[mr hangman] 07/9/2010 16:58

By the looks of things..think i might have a stalker

[old giggleswickian] 07/9/2010 13:32

mr hangman,
Would you care to expand on your thoughts over on OCDO?

Ian.

[mr hangman] 07/9/2010 13:20

Have you bought in here yet Jon C, go on you know you want to

[jonc] 07/9/2010 13:16

No there is too long a queue on the other thread.

[mr hangman] 07/9/2010 13:00

Oi Jon C, arn't you on the wrong thread ?

[jonc] 07/9/2010 12:55

Double top in place?

Support looks to be at £6.50.

[nellie1973] 03/9/2010 18:06

Tipped in press