Dp Poland Share Discussion Threads

[mrcravat] 17/2/2015 12:28

Spread widened to 1

[hybrasil] 16/2/2015 15:01

doubled my money in a week now at 20P.

[hybrasil] 16/2/2015 09:07

Now 80 % up on the week.

[hybrasil] 16/2/2015 08:37

Surprisingly the weekend press didn't really feature this apart from one article.

It will now start to appear on tip sheets as it definitely has potential.

Heres to back to £1.00 a share.

[maiken] 14/2/2015 13:22

I simply rang the phone no.given for enquiries at the end of the trading statement and he rang back a couple of hours later.As I recall he certainly mentioned an intention to open more corporately owned stores.
I could be wrong but I sense a note of sarcasm/disbelief on your part.That's your prerogative of course.
Next time I'll let you take the initiative,contact the company and share what you found with other private shareholders.I'll carry on doing my own thing and keep it to myself.

[bigboyo] 14/2/2015 11:42

Maiken,

Did you just call Peter Shaw at the DPP offices in salubrious Esher ? Nice of him to take a call from an investor punter. And during that conversation he just mentioned that the expansion would be via a capital draining and loss making corporately owned store route (remember stores cost a lot to set up and are ebidta draining for at least 3 years)

I don't think there is ANY WAY DPP can expand WITHOUT a rights issue if they follow the corporate opening route you said Mr Shaw stated to you.

Total existing stores have just about broken even on EBIDTA basis (which means that central costs are still leaking cash to the tune of at least £2 million per year).

Adding loss making corporate stores will drain cash out of the business at a faster rate, and that, to me anyway, implies a rights issue would be needed pretty soon. I think that it would be foolish and not in existing shareholders interest if DPP took this route.

Incidentally, DPP is not part of the Polish Franchise Association nor did it exhibit at their last Expo in Warsaw. Very strange.

[maiken] 13/2/2015 15:58

Big Boyo,
I hope you are right regarding sub franchisees but that is NOT what the CEO said to me as my previous post indicates.if i understood correctly he said openings would be corporate for the time being with no new sub-franchisees on the immediate horizon.

[mrcravat] 13/2/2015 13:47

Definitely worth watching as a long term with a great and proven product.

[bigboyo] 13/2/2015 09:16

maiken,

The update actually says that they have

"Significant new store openings targeted for 2015 ..."

And my subtext reading of this is that this will be sub-franchisee lead openings now that the initial sub-franchisee trading data shows that EBITDA can be reached fairly quickly when units are owned by motivated sub-franchisees and this can be used to sign up more sub-franchisees.

I am still not happy with the way trading data is being presented and especially as this update is all in PL currency rather than GBP ( the converting back faces a headwind as the Sterling has appreciated against the PL and it will be interesting to see impact of this in full year results)

[the ghost who walks] 13/2/2015 07:55

Think one important change is mgt seems geared to share price following option plan in december

[ghostofahangman] 12/2/2015 09:02

Very good points maiken, it's nice to see a informitive balanced post for a change, instead of the postive ramp ramp posts we normaly see on ADVFN, to me this
looks more like a GBR then a DOM, for the short term traders, this could still have legs, but as a long term investment, the glass certainly has to be half full

[maiken] 12/2/2015 08:00

last time the shares were 25p the company increased the shares in issue by 300% with a placing at a 35% discount.Don't forget to factor that into your calculations landmark2.

[landmark2] 12/2/2015 06:55

The share price was post 25p when the company were no ware near as well established. Look for a run up to 20p this morning.

[maiken] 11/2/2015 17:56

I put a call in to chief Exec Peter Shaw today.
Crucially I was left with the impression that further expansion will have to be self funded for the foreseeable.i.e. while they talk with potential sub-franchisees periodically there is no queue beating a path to their door.
Since they need to regain momentum on store openings it falls to themselves to do this.
I therefore feel they will report a loss around £2m for the year just finished [excluding any negative currency impact which doesn't concern me too much],and it will take another couple of years,at least,before they get close to break-even.Opening and financing those new stores on their own will be the drag.

In turn,this makes me think they would love to have another placing if there was any chance. I,for one,haven't forgotten how they royally shafted all private shareholders with a massive placing exclusively to institutions 2 years ago at a huge discount to the prevailing share price.

DPP could yet do well but for me to get really interested they need to start signing up sub-franchisees in reasonable number.I retain a small holding but expect few fireworks for the next couple of years

[envirovision] 11/2/2015 12:29

I am not, market makers are creating volume on any illiquid or sleeping share on the whiff of positive RNS's.

Yesterday for example ALPH hit 4.4 pence intraday on news of short term refinance.

Market makers did the right thing here to practically open it up at 40% as its attracted lots of volume and interest, just look how the volume accelerated into the morning.

Same thing happened yesterday after alph markup.

Whos next, grathene nanochem ?

[21trader] 11/2/2015 12:04

I too am suprised at the rise. Funny how some stocks tank on similar and other rise 50%.

Market cap seems well high but what do I know.

[envirovision] 11/2/2015 11:54

History tell us the price drops when they report their losses, why would march be different ?

This will eventually become a profitable company though, perhaps in 2017.

[hybrasil] 11/2/2015 11:41

envirovision

For once I think you are wrong.

I actually bought more at 15p.Once this achieves traction which I believe is about to happen it could easily be a 5 bagger. As I have said here before I made 32 X money on DOM.

[envirovision] 11/2/2015 11:36

They will report another large loss in March and the price will get hammered, but you'll be long gone by then.

[hybrasil] 11/2/2015 11:30

bought 100k this am at 10p.

[bigboyo] 15/1/2015 13:22

Coyote,

This company is, in my opinion, EXCEPTIONALLY poor at communicating .

Let me give you an example :

In interims for 2014 (i.e. 6 month period to 30/6/14) DPP announced >>

"Our 5 top stores in Warsaw were each EBITDA positive for the period January - June, proving the model in our core Warsaw estate and giving us confidence to commit to an accelerated store roll-out in 2015."

What it failed to mention is that by December 2011 there were already 12 stores open. Thus some 30 months later ONLY FIVE of th 12 stores are consistently EBIDTA positive i.e. less than 50% of those which were open by December 2011.

The company needs clear concise information , laid out as , store 1 now ebidta positive, store 2 negative etc with store number being the chronological order.

That way we can see clearly how well operationally the stores are doing. DPP states percentages but they are meaningless and trite. What we need are clear logically laid out numbers so that as investors we can make an informed choice whether to invest in DPP or not.

[wylecoyote] 13/1/2015 18:36

Interesting chart movements lately. Any news expected soon?

[the ghost who walks] 22/12/2014 08:06

Interesting on options, shame no detail on share price

[guernseymoney] 04/11/2014 12:29

Plus Rush Hour pizza have pre-emptive rights on future fundraising (which suggests there may be more dilution? - dunno).

Also, this sub franchisee - Jakub? - hopefully he can still assist DPP with other stores not owned by Rush Hour.

Not buying more on this news, but agreed it's on the positive side.

[bigboyo] 04/11/2014 12:05

Interesting that sales of sub-franchise's has been to ex managers and a Singapore based fund.

Shame that the balance sheet implications of the sale were not part of the RNS. Its stuff like this that really annoys investors as it always seems that DPP is trying to spin any news.

On a ball park figure (lloking at last balance sheet of 30/6/14) and depending on which stores were sold (older stores would have been depreciated more) it seems £500K for 5 stores probably represents the book value of these stores.

In context it is miniscule in terms of what stores sell for in the UK (750-1000K per store usually).

Anyway, overall this is positive news from DPP and hopefully marks the start of better times.