Dmatek Ld Share Discussion Threads

[holts] 09/10/2008 08:04

or in short , if we have loads of options etc picked up pence and someone is prepared to offer a half decent price , we're orf.

[elmfield] 08/10/2008 23:55

ref the post I put up yesterday, this is the reply:
.
.
Dear ......,


We appreciate your comments.


I can not add anything useful to the update we put out yesterday.


The Board is and will be considering any proposal for the business alongside other options to maximize shareholder value with the best interest of stakeholders in mind.

Kind regards,

[woracle] 08/10/2008 17:32

You must be joking hold LMS paper ! These fund manager/financial chaps are numpties.. you should have figured that out by now !

[gerdmuller] 08/10/2008 14:54

I agree you dont need to hold dtk as a way into lms you can just go and get some shares as I believe you have before elmy.

It is a completely different investment.

The point is dtk do not need to be sold unless it is for a massive premium.

They do not need cash for growth as they have it.
They do not need to raise funds.
The business is growing fast and producing remarkable cash flow.

They are now getting the step changes they have spoken of and they are relatively recession proof as government now admit crime will rise during a recession.

LMS know this sentiment wont last forever, they know if they get this on the cheap then they will be trying to IPO it back to us in 5 years for a massive premium.

[elmfield] 08/10/2008 14:15

WELL, they have a lot of cash in the chest, have to cross that bridge when/if we get there !

[sammu] 08/10/2008 13:56

I think Woracle has it there. Management I think won't support a 180p or 200p bid, and so the market thinks LMS will walk away.

Elms - I don't think I want LMS paper, do you?

[elmfield] 08/10/2008 13:48

suppose if they offer so and so many shares in LMS CAPITAL you might consider 170p+ or not? say 3.5 lms for one DTK?

[woracle] 08/10/2008 13:26

I think this is opportunistic and they will offer a bit over 5 year high of 170p which is about the usual ballpark 40% premium. Of course noone will accept that and it will fail. The market thinks so too at the moment..

[elmfield] 08/10/2008 13:18

wellno reply so that fell on death ears, I won't be voting to give my company away but hey it will make no odds what we think, suppose we will keep exposure through LMS if it happens.

[gerdmuller] 08/10/2008 09:08

I just can't see them willing to pay a bid premium of what would be over 100 percent (120p when bid announced). Average bid premiums for PE PTPs have only been around 35 to 40 percent over recent years. In which case people should say no to any takeover.

[elmfield] 07/10/2008 21:26

Dear ....,
As you know I have been a shareholder and backer of Dmatek for quite few years and have quite a substantial holding spread over .......,
the recent takeover we made in America and results since have made me add on to my holding and I fear that we might be tempted to accept an offer which would fall short of expectations, talking to a few other holders, I think we would not be hapy with anything less than £2 and in fact would only start to be keen at more like £2.50 , on our projections and taking a realistic price earnings ratio this could be easliy achieved in a two year span, after all DMATEK should be pretty immune to market troubles, any bidder would have to bring extra input and leave holders with some sort of stake in the future growth that we have waited so ong for, did not we have a share issue in 1986/7 at prices way above todays?
I look forward to hearing from you ,
....... ........

[cellars] 07/10/2008 20:37

A share price of 250p does seem reasonable.
My detailed forecasts for Dec 08 and Dec 09 are, for a change, in line with the broker forecasts. Put them on a c.30% tax charge (one way or the other DTK will eventually pay tax on profits derived from the USA)and, conservatively, we have EPS of 14.25p for 08 and 16.75p for 09. Underlying market need and growth and acquisitions based on strong cash position / balance sheet / trading model, and what looks to me like a good managment team, suggest EPS will grow at in excess of 15% p.a. the following 5 years. A share price of 250p would give a PER of 14.8 for 09 and the magical PEG of 1. Wonderful value for the buyers, good for recent holders, but long term holders may not be ecstatic.
Wouldn't add anything to the 250p share price for the cash because that will be needed to execute the growth targets which justify the 250p share price.
I too am suspicious that in the circumstances there is an unusually large line of shares on offer. What could be going on? Perhaps some one is worried that interest in the shares could deflate again if there is little trading activity? Could this approach be an effort to smoke out a trade buyer? Let's watch this space.

[funchalman] 07/10/2008 20:33

its quite possible that the press report in the israeli press will turnout to be quite accurate.the words "advanced negotiations" would suggest that the talks have been going on for sometime.this newspaper story has made lms and dmatek issue statements re offer.otherwise we might have woke up one morning to the news of an agreed offer for the company.i wonder how the rules for takeovers in israel differ from uk ones.

[elmfield] 07/10/2008 19:05

evening,
just back,
no hey won't get mine unless they pay a lot more han this, I will be writing to the company sec later this evening, he has always been good at getting back, I will let you all konw what I find out,

[napoleon 14th] 07/10/2008 15:26

Depends on the offer.

Less than £2 I say no.
I bought with a five year view & a target of £4.
But then I'm only a PI...

[milesn] 07/10/2008 14:38

What are your thoughts on the % likelihood of this going through?
50:50 or better?

[sammu] 07/10/2008 13:58

Market reaction is somewhat muted, not sure why.?

[holts] 07/10/2008 13:48

cash is worth about 27p a share , I bet they go cheeky and offer about £1.57

[funchalman] 07/10/2008 12:00

just noted that in june 2008 lms had £70 million in cash,lets hope its burning a hole in their pocket!

[funchalman] 07/10/2008 11:55

well the net asset value of lms capital at dec 07 was £289 million so no problem affording dmatek one would presume.and as an original shareholder when dmatek floated on the london stock market,they will know the company well and the value that remains untapped in this company.

[milesn] 07/10/2008 11:11

The shares are very well offered - can get 25k
Any ideas where all the stock is coming from?

[cambium] 07/10/2008 11:08

still time Rivaldo, I have just picked up a further wadge for 132p

[napoleon 14th] 07/10/2008 10:57

I hope it doesn't come off; £2 is well under my long term target.

[gerdmuller] 07/10/2008 09:50

Yes, they would be getting a company which is projected to double eps in the next 18 months and paying a multiple of below 10 for all that growth. Not including the cash pile of course.

And looking at some of the contract wins of late those projections do look solid.

I work in the pe market and know the very rich people who make money by spotting value others just cant see for some reason. Here again they have spotted a bargain which has been undervalued for far too long.