Dci Advisors Share Discussion Threads

[jonwig] 19/8/2008 09:58

Hi, Kenmitch.

The Panmure broker notes on the DCI website are worth reading: as comprehensive a summary as you're likely to find. These are the people responsible for suggesting an upgrade to NAV to nearly 300p.

The lack of dividend is the price you pay for low gearing, with cash conserved for development. There could well be a return of cash to shareholders in the event of any disposal: DCI have hinted that's under consideration.

I suppose the lack of enthusiasm for DCI is tied up with recession and consumer retrenchment, though the high-value end might be resilient, and they are targeting new-rich from Russia, Ukraine, etc.

I know of nothing specific to DCI which could account for the huge discount. In fact, political improvements are happening in Cyprus, with North and South now talking to each other.
Directors seem shrewd and competent to me.

Having said all that, I should point out that I sold recently (post #40). In this market I tend to do that sort of thing rather often!

[kenmitch] 19/8/2008 09:45

I've started checking out DCI following the very positive comment in I/C last week.

Interesting to see that they have low gearing and - as with so many others - NAV is way above the current share price.

Also noticed very heavy Director buying a couple of months ago.

Have found loads of positives already - yet the share price is down again today.

I couldn't find anything about a dividend though. Presumably they don't pay one?

I've also been monitoring the Vietnam Trusts. Vietnam is the worst performing market this year, with Ireland second worst, so presumably there will be some upside in time. Vietnam Opportunities - VOF - has risen strongly recently. So far though JSM Indo China hasn't. I don't hold either yet, or DCI.

Are there any catches unique to DCI? What I mean is that all similar outfits have seen their shares marked down, and often with no good reason, but occasionally with good reason like Invesco Property where debt is a big issue.

Before buying DCI it would be a great help if anyone is prepared to post, to know if there is anything specific to DCI to explain the big fall in the share price? Hope not - and the recent Director buying suggests not.

[hectorp] 18/8/2008 19:27

Not at the moment will look back in nxt day or so
DCI agree getting weak, am hanging on however.
H.

[jonwig] 18/8/2008 17:55

Hectorp - I have to admit that I traded this and sold last week with a 10p gain.

Doubtless I'll be back in if the fall here persists!

Have you the EPIC for the Vietnam trust you mentioned?

[hectorp] 18/8/2008 17:45

Todays small fall reflects a few 90-91p sells.
The share is drifting, but not in any alarmist way.
This co was tipped in the IC. The writers of that rag are keen on the Emerging and E-European property cos.

Note the Vietnam property trust is trading at 70+% discount !

[hectorp] 04/8/2008 19:21

I noticed it j.
Been away for the weekend will have a look later
H.

[jonwig] 03/8/2008 08:04

David Stevenson's column in this weekend's FT highlights five companies, including DCI:



He also mentions PMEA (now $0.81) which I've had my eye on for a few weeks, though haven't bought.

[hectorp] 30/7/2008 10:00

Fair number of buys today. Consistently improving.

[hectorp] 28/7/2008 17:27

Hi J.
well, time will tell!
I've added to TRC and DDC also.
DDC good news from a certain viewpoint today.

I see 'Capital and Regional' is a basket case according to Inv Chron.
H.

[jonwig] 28/7/2008 16:47

Good timing, H!
They haven't reported any buybacks for a few days.

[hectorp] 28/7/2008 16:17

Moved up today on a few large trades.

[hectorp] 25/7/2008 08:55

Bit of patience needed .
I've bought some 22K shares this week. My one concern would be that a resumption of the US Bear market very soon IMO will take them down further. But dynamics relating to this company gives me a sense of relative security at this stage of events.
talk later
H.

[jonwig] 24/7/2008 20:09

With Lansdowne Partners selling their complete holding (49.7m shares) on 10 July (see RNS 16/07) we've probably still got some overhang to clear, which will explain why the huge buybacks have had only a muted effect.

At some point, buys of the current size will see quite a jump. (Unless, of course, another big seller is about!)

Buyback RNS tomorrow morning maybe.

[hectorp] 24/7/2008 17:47

ello ello, over 14 Million buys, two in large batches.
Hmmm thats taking the share repurchased far!
Maybe we should get an RNS about this one.

[hectorp] 24/7/2008 16:04

Lot of large buyers today, probably more company buybacks.

[hectorp] 23/7/2008 23:49

Hello too jonwig,
Panama looks very interesting, but the letting of properties is presumably a long way off. THe principle of letting to high net worth visitors seems sound.
After all Russians and Greeks have more in common than we do with Greeks, hard as it may be to accept it ( ie Orthodoxy).
Over a million shares bought back yesterday, so the current price should be gathering strong support - as is witnessed today.
Yes lets see a disposal in the next few months to ascertain prices. I'll be over there in September. Prices of Cretan properties , ie small houses, are about the same as last year, so far so good. Note Crete is not, an up-market destination. What is interesting there is the abundance of ruined and dilapidated farm and village stock that can be picked up very cheaply. Of course this has no relationship with the market of this Company.
regds
H.

[jonwig] 23/7/2008 17:40

Hello, H. Thanks.

MERE is, of course, prime offices in 'Old Europe' and valuations are pretty transparent, given the liquidity of the market.

DCI isn't being valued on the basis of a particularly populous database, so you're right to wonder a bit. But they do also appear to be developers - ie. adders of value. What's needed (as with DDC) is the catalyst of a successful disposal to prove up the investment case.

Also, whilst UK punters might be a bit distressed, they mentioned Mid-Easterns, Russians and Ukrainians. (I suppose I ought to be a bit wary of supporting bandit capitalists.)

Finally, Dominican Republic and Panama - won't these attract the global rich list?

PS. I think the buybacks might well be putting a floor on the share price at 82p here.

[hectorp] 23/7/2008 17:28

I note MERE valuations are
The valuations have been performed in accordance with the Royal Institution of Chartered
Surveyors (RICS) Appraisal and Valuation
Standards.
- would this also be the case in the valuation assessment of DCI?
Both MERE and DCI are investing in European property.
I note MERE's property is reported as falling in value by 1.8% per quarter/quarter.
Surely this should be the case with DCI?
just some points, /ideas for future discussion.
What I am also keeping in mind regarding this and also DDC, RUS etc, is what will happen to the share prices of this sector when the Dow resumes the next leg of its downswing in the next couple of weeks.
It will be 'sehr interessiert'.

[hectorp] 23/7/2008 13:33

It seems likely the company's strategy is to go for the better off visitor to luxury complexes? If so, thats probably sensible.
I'd not be so keen on Greece as some places, but they probably know that market well.
In any case I am a regular Greece visitor and not personally biased. In fact my only real reservation is ( especially after reading today's Panmure flash - is that I hate to see quiet Greek beach areas built up on. However as they will never build on my favourite Greek Island spot, which is a secret, I can live with it.

The 'anomaly' of value to book discount of 70% is of course what has to drive my interest. Many thanks for mentioning the company, jonwig. Of course there may be good reasons why the price has fallen so much which Panmuir is unable to understand or choses not to mention.

Also, Panmuir tantalisingly suggests that NAV may still be at least as high as last year.
I not the point you make that gearing is low. This is most helpful when it comes round to valuing assets.
It also sees the stronger Euro to sterling is not a negative issue, it only reduces the number of BRITISH visitors ( and no doubt Americans too these days?) to the 'ordinary' venues. I am not sure better off venuew will be hard hit.. I note there are many fewer hotel lets to the Olympics than was expected.
H.

[hectorp] 23/7/2008 13:04

hi johnwig, bisiboy,
will have to look at the research notes.. talk later /tomorrow.
- but of buying today I see.
H.

[bisiboy] 22/7/2008 19:19

these are just so so cheap
i just hope that we all benefit from the undervaluation and these are not taken out cheaply

[jonwig] 22/7/2008 16:34

Trading update. Lots of interesting developments (eg. Panama) but no hint of disposals in progress:

[jonwig] 22/7/2008 12:42

Hello H ... you'll find the Panmure Gordon research notes on the website.
There are three recent ones.
Look forward to your views.

[hectorp] 22/7/2008 12:37

Must have a good look at Dolphin.
I see that the Director has stopped buying as you say above, which is being replaced perhaps by even more share buybacks.
I assume the key to this is the asset value of the properties.
- close watch
H.

[jonwig] 22/7/2008 07:16

freds - always possible, as the current share price is a serious discount (given the low gearing).

There are two big buyers, though, the company and its boss. Apparently there's no limit to the amount or frequency of share buybacks allowed. (Another 550k yesterday, I see.)

The fact that the boss hasn't bought for a while suggests a deal might be imminent (or his monthly pay cheque hasn't arrived yet). We can but hope!