Dmatek Ld Share Discussion Threads

[gerdmuller] 31/10/2008 11:57

mrionionbahjee2, I agree he has been writing for the ft for ages and follows chart patterns.

I once read something on chartists (not the political ones) where one so called chart expert was challenged to have a chart he had not seen cut in half and then asked to predict future movements. Of course the challenge was declined.

I think he is trying to tell people he worked this £2 out himself when he just seems to have read a few newswires.

As I have said before from estate agents to investment bankers to dodgy market traders they all know the price of everything and the value of nothing. Now we all all suffering the consequences.

[crickley] 31/10/2008 11:56

What's wrong with a 40% odd price increase in a short period of time? Especially in the current market. You can then take the profits and invest in another opportunity thus compounding your gains.

[crickley] 31/10/2008 11:30

200p is a decent premium to the current price and shorter termers would undoubtedly be happy with a quick profit especially if the offer comes through in a few days.

Longer term the price might be a lot higher given the solid growth prospects and comparatively low PE.

A winner on both fronts imo i.e. a good chance of significant price appreciation in the long term with short term fireworks a possibility too.

[gerdmuller] 31/10/2008 11:13

Interesting how this price of £2 first got into the public domain and now everyone seems to be seeing it as a fair price when before they would probably be saying this undervalues the company.

They would be buying the co on a pe of about 12 when eps growth was 60 percent. Is that really such a good deal for investors or just opportunistic?

I know markets are dire but that will not always be the case and if a rally eventually comes it could be quite sharp.

I suppose if they did come up with a price of £2.10 everyone would be jumping for joy.

All this growth should not be sold on the cheap.

[protean] 31/10/2008 10:11

Just reading David Schwart's recent article in the FT which is certainly upbeat with regards the likely takeout price. 200p would be very nice indeeed and a good premium to the current price.

The price is currently holding nicely and with any luck we will hear something positive soon.

----



"My research finds that two institutions currently own 33 per cent of Dmatek. One was once affiliated with LMS. The managers know each other. I theorise that LMS has probably received tacit approval for its plans. It is also worth noting that Dmatek's top managers have tiny stakes in the company and cannot block the acquisition.

Putting it all together, I conclude this takeover will probably occur. Given Dmatek's profitability and strong growth trend, the only reason a current holder would sell is to cash out at a substantial profit. Viewed from this perspective, I pencil in a takeout price in the area of 200p a share.

For the moment, I sit with fingers (and toes) crossed."

[elmfield] 30/10/2008 07:56

morning, (:-

[elmfield] 29/10/2008 18:12

means two things take your pick, LMS walk away we fall to 130pish, LMS make an offer, either way cheap at these prices when you convert future earnings to sterling, reckon we could be on pe of single figures this year,. and prospect of growth during these difficult times, what more do you want oh yes a dividend well that is no problem for this lot should they so wish! lol!!
hope the cash was not in the banko de Iceland?

[milesn] 29/10/2008 16:43

elmfield - you see 2 buys of 10k shares today? Interesting..

[elmfield] 29/10/2008 16:33

got a few more today, take over or not reckon we should do O.K on a 6 to 8 month view.

[holts] 27/10/2008 22:21

cant believe someone has had to sell 5000 at 1.30 mm's really taking the urine now.

[taylor20] 27/10/2008 20:24

Topped up again today, long term winner regardless of any bid as far as I can see.

Cash rich, Dollar strengthening, profits increasing much faster than expenses, recession proof products (eldercare excepted), expanding into new markets, renewal and expansion of contracts = product is good/proven, possible bid at £2+

Only obvious perceived negatives, Euro still weak, risk of major product failure?, Israeli based?

[oohrogerpalmer] 27/10/2008 19:09

DTK have no reason too sell out cheaply , hopefully we may get news next week sometime ,
Just in time to maybe put pigeon on the table at Xmas.

[funchalman] 27/10/2008 13:47

friday was a very bad day on the markets and the mm's are not known for their generosity on such days,and occasionally they give the tree a good shake to dropout weak holders if they feel a need to get their hands on some shares.
i thought when the bid news came out that it would probably be a month or so until we get news one way or the other.the ideal situation would be for an agreed bid then a counter bid from another party,possibly another company in the same sector as dmatek,but that is really just me wishing christmas to come early,but you never know such things do happen,even in a recession.

[oohrogerpalmer] 27/10/2008 12:14

Funch -
I was only speculating as to why the sudden price drop at the end of Friday.
Thinking that maybe news had leaked that the offer LMS had made had been rejected by DTK .

Obviously no news out over the weekend to confirm or deny so can only think price drop friday in the last hour was more to do with the state of the markets than news of takeover !!!

[elmfield] 26/10/2008 10:02

the decline in te £is going to add say 20%plus tp profits here, if not more, from where I am sitting this is a great place to be. (:-

[oohrogerpalmer] 24/10/2008 16:37

If it is rejected it doesn't stop them coming back with a better offer.

Its only natural they will offer a lower price to gauge shareholder opinion.
There may be some press coverage over the weekend with any details ?

[spaceparallax] 24/10/2008 16:14

I have always suspected that bid approach was likely to be on the cheeky side i.e. 25% premium to the prevailing sp, and consequently likely to be rejected by the Company.

[holts] 24/10/2008 15:33

or just highly nervous market where mm would not wish to hold any stock at all , hence any sale regardless of potential takeover results in mark down.

[elmfield] 24/10/2008 15:06

Could be, inside dealing then?
still we will come good as fast or faster than most other things, imv.

[holts] 24/10/2008 14:57

and presumably someone thinks they know it is not proceeding

[elmfield] 22/10/2008 18:07

it shows now, but the one yesterday did not.