Dowgate Capital Share Discussion Threads

[rawli] 01/10/2008 22:37

Dowgate Capital Stockbrokers Limited

Lead Transactions in 2008: up to 31 August 2008



Client Date Type Amount Raised

TSE Group 15/08/2008 Placing £340,000
Pentagon Protection 20/06/2008 Placing £445,000
Motive Television 02/05/2008 Placing £400,000
Sectorguard plc 15/04/2008 Placing £300,000
Sareum Holdings 14/04/2008 Placing £548,500
Intellego Holdings 20/03/2008 Placing £261,700
John Lewis of Hungerford 07/03/2008 Placing £360,000
Nextgen Group plc 27/02/2008 Placing £1,500,000
EIRX Therapeutics plc 19/02/2008 Placing £447,375
Newmarket Investments 05/02/2008 Acquisition, Open Offer
and Placing £1,257,962
Pentagon Protection 04/02/2008 Placing £500,000

Total £6,360,537

[rawli] 01/10/2008 22:35

Pan Pacificaggregate Change of Adviser




RNS Number : 4898E
Pan Pacific Aggregates PLC
29 September 2008


PAN PACIFIC AGGREGATES PLC

("PPA" OR "THE COMPANY")


CHANGE OF ADVISER

Pan Pacific Aggregates plc is pleased to announce that it has appointed Dowgate Capital
Advisers Limited as its Nominated Adviser with
immediate effect.
---END---
ENQUIRIES

Pan Pacific Aggregates plc Tel: [phone]
William Voaden

Dowgate Capital Advisers Limited Tel: [phone]
David Newton

Lothbury Financial Limited Tel: [phone]
Michael Padley



This information is provided by RNS
The company news service from the London Stock Exchange

END

[mjcrockett] 29/9/2008 18:52

There is an article on Dowgate in the October edition of Aimzine - it's free to register to read Aimzine at

MJ

[onsider] 29/9/2008 16:31

donaferentes, how can you say that wehn, in the last 6 months. the share price has lost 25%????

Anyways, I'm out. Good luck to those that continue to hold.

[targatarga] 29/9/2008 00:10

hill station suspended after dowgate resigned...

[lr4850] 28/9/2008 19:45

Another September transaction added.

[donaferentes] 26/9/2008 17:19

Onsider - in spite of the mediocre results and the current market turmoil, DGT has held up over the last 6 months and has a yield of 4.9% and seems to be in a good position to take advantage of the upturn in the market in a year or so's time.

I can imagine wanting to sell when it fell from 16p to 10p, but can't see the point of selling now - unless you think the results mean this will go lower. If so, why no reaction yet reflected in the SP, do you think?

If you gotta go, you gotta go, but interested why.

[rawli] 26/9/2008 15:25

Website updated with 2 more September Transactions

[onsider] 26/9/2008 12:17

Very disappointed. All I have ever done with Dowgate is loose money.

With over 60% down right now, I have lost parience after 4 plus years and think I'll cut my losses and move on.

Good luck to those that continue to hold.

[gengulphus] 25/9/2008 18:47

They do have to pay for them!

Not necessarily - for example, there's no indication in of any payment for the shares it announced were to be issued.

They do however have a duty to manage the company for the benefit of its shareholders. Which means that when they issue shares, they have to have an arguable case that there is a benefit to the shareholders from doing so. It doesn't have to be a provable case - it would be hard to prove that shares issued under an employee share option scheme benefitted the company's shareholders, for example - but it does need to be arguable (the argument for employee share option schemes generally being that it gives employees an extra incentive to make the company do well and stay with the company). In the case of the share issues announced in the above link, the arguable case is presumably that it helped attract a couple of highly valuable people to join the company.

The net result is that no, they cannot just award themselves more shares on a whim. They have to have a reason for doing so that they can reasonably argue they sincerely believed was in the interests of the company's sharehlders. Not necessarily a very difficult hoop to have to jump through, but better than nothing!

Gengulphus

[donaferentes] 22/9/2008 20:42

They do have to pay for them! But they can sell them to their city friends without the need for a costly prospectus and due diligence which would be required to offer them to the hoi poloi (that's Greek for you and me - not city folk, its literal translation!).

[serratia] 22/9/2008 19:54

Gengulphus,

Thanks for the clarification.I'd missed the fact that they can grant themselves an extra 44% of the company if they so choose.Must watch for that one.

[gengulphus] 22/9/2008 19:31

Are the buy backs cancelled or held in treasury to give back to themselves as incentives?

They've put them into treasury - but it doesn't make any difference to what you're worrying about.

Resolution 6 passed at the last AGM gave them authority to issue ~44% extra shares on top of the ones in issue then, without getting any further authority from shareholders and without applying shareholder pre-emption rights (which say that unless shareholders resolve otherwise, issued shares must be offered to shareholders in proportion to their shareholdings).

The rules about treasury shares say that releasing shares from treasury counts as issuing them for the purpose of such resolutions. So there's no difference between cancelling shares and putting them into treasury as far as their ability to give shares to themselves as incentives is concerned - it makes a difference to whether they issue new shares or release them from treasury, but they're subject to exactly the same limits either way.

The reasons for putting bought-back shares into treasury rather than cancelling them are that releasing shares from treasury is administratively cheaper and has a better effect on the company law distinction between distributable and non-distributable reserves than issuing new shares. For all other significant purposes that I know of, there is no basic difference between shares in treasury and shares that don't exist at all.

Gengulphus

[serratia] 22/9/2008 18:23

Are the buy backs cancelled or held in treasury to give back to themselves as incentives?

[donaferentes] 22/9/2008 17:20

In the last two days they have just spent 57% of the dividend cut on share buy backs. Over the year they have spent 214% of same or 85% of the full year dividend cut, assuming they half the 2nd pay-out as well.

I know that logically buying in the shares to reduce the number of participants in the company's total position should be the most effective thing to do, but in practice, maintaining/growing the dividend satisfies a great many more investors' criterion for investing.

[onsider] 22/9/2008 14:47

More buy back shares. Now 1.7mil

[onsider] 19/9/2008 13:36

Thanks don, yes, saw the RNS after posting.

[pomfrat] 19/9/2008 13:29

From Equity Development

"Dowgate demonstrates resilience

After a series of bad, sometimes shockingly bad, results from other SME-focussed brokers, Dowgate Capital's results must have come as a relief to market-watchers. It demonstrated its resilience by earning a decent profit before exceptional costs in the first half of 2008, despite the sharp downturn in AIM activity, both dealing and fundraising."

[serratia] 19/9/2008 12:44

Equity Development note on Dowgate just released.

[donaferentes] 19/9/2008 12:22

It holds 1,445,000 in Treasury (as of today's announcment) bought at approx 10p = approx £144,500 spent on them.

[onsider] 19/9/2008 08:58

How much did Dowgate spend on Buy backs last year? Anyone know?

[donaferentes] 19/9/2008 07:21

They'd have shown an improvement of £740k on the PL, less £73k tax (30% of the £244 - I've assumed the share based payment is excluded for tax, is this correct?) showing as an increased creditor, a reduction of £496k on issued equity/premium and an improvement of £244k cash. So at least bring us back to positive territory.

EPS would have been £667k/39m shares = 1.7p better to make a total EPS of 0.6p for H1. Let's double that for a flat full year to 1.2p (1.7p 2007), for a PE of 8.5 - not so bad in current trading conditions, but hardly cheap as chips compared to the rest of the market's quality earners at 2-3 these days.

IMHO, DYOR etc.

[davidosh] 19/9/2008 00:22

Just out of interest has anyone had a stab at working out the key figures if the company had not taken on the new guys and laboured on as they were ?

[donaferentes] 18/9/2008 23:25

saddem - so you assert. just trying to evoke some rationale from you. I hold a lot of these and want you to be right, just need some substance to your POV.