Dp Poland Share Discussion Threads

[guernseymoney] 21/6/2017 11:33

Sure, but (without wanting to state the obvious) investing in IPOs is riddled with unforeseen risks, some go well, others not so. An offering memorandum is not much more than one giant disclaimer. Sometimes you get lucky - I put a few quid into CHT (Constellation Healthcare Technologies) that IPO'd in 2015 and it got bought out at over double the price it launched in less than 24 months, so that was good. Another IPO I was heavily invested in but lost a lot in was MPL (Mercantile Ports and Logistics) - but this I believe is due to yet-to-be-discovered fraudulent activity. Possibly my worst investment decision to date. Very painful indeed. Re DPP, assuming one got in and out, you could have made a tidy profit selling (or averaging down) when it was turning south. I bought at 12p, 19p, 33p, 56p, 87p, so views and time horizons change all the time - I guess it depends on one's investing style and confidence in a stock.

[a1samu] 21/6/2017 11:11

Well all good. If you would have invested £10000 at the placing at 60p share, it would be worth £8600 today. Not much of an investment! Why would one do such a thing. The top management manages to lose money big time. This is not investing. Just a thought!

[guernseymoney] 21/6/2017 09:02

@a1samu I don't disagree with the facts and have pointed out the dilution risks in several previous posts. In retrospect, it's very clear that DPP didn't raise enough funds at IPO and it became apparent early on that dilution/rights issues etc would be on the cards, hence why it fell to 8p or so. I think Dominos (or a another company who owned rights) previously tried to launch in Poland some years back but failed. DPP has come a long way since IPO and there is clearly traction now. I do still see further dilution risk, some tail risks for the Polish economy/political landscape, but on balance, I am still long on this share - the company is doing all the right things and has top mgmt.

[maiken] 21/6/2017 08:44

a1samu,don't forget the big one ! 70million shares placed at 15p in Nov 2012 which the placing document stated was intended to see the company through to break-even ebitda. That one diluted existing shareholders by 73.4% ! The CEO peter Shaw subscribed for a massive £4950 worth.

[a1samu] 21/6/2017 08:21

28.7.2010 Dpp came to market with a price of 50p/share. 23.12.2011 Placed 2.75M shares at a price of 60p. 16.6.2015 Placed 36.5M shares at a price of 17.375p. 2.10.2016 Placed 6.7M shares at a price of 48p. 6.6.2017 Placed 12.2M shares at a price of 43p. Long term vision on 16.6.2015 200-300 stores, later 200 by 2020. Make what you like of this, with the continuous dilution, is this progress inspiring? Under 20M shares on admission on the 28.7.2010, now shares in issue are 150M.

[guernseymoney] 21/6/2017 08:07

@a1samu Many companies don't make money/breakeven yet the share price grows because of the exponential growth potential in the future (think tech companies, i.e. cyber security ones). Remember that many companies are valued at their discounted fair value - taking into account (1) discount rate, (2) growth rate, (3) terminal growth rate, etc If lots of positives baked into (2) and (3), then accumulated losses are not particularly relevant, since growth potential (and profitability) in future far exceeds short term losses. HOWEVER - what is relevant is further dilution between now and the breakeven/profitability of the stores. A big positive for me is DPP's BoD. Very capable indeed.

[stefanzygmunt] 20/6/2017 16:48

I was just about to order one, too hot to cook ha ha

[a1samu] 19/6/2017 08:55

Plan by Directors is to have 100 stores by year ended 31.12.2020, that is in four years time inc. 2017. Accumulated losses to year ended 31.12.2016 are £16.116M. It is unclear as to from what point losses will stop and accumulated losses commence to be reduced by earnings. It is likely that even the current year will result in losses, to be added to the above accumulated losses . At what stage will the accumulated losses be turned into earnings, to enable the dividends to start to be paid. Even with 100 stores opened, by 2020, it is likely that it will still take some years to achieve to convert the losses to earnings from which dividends can be paid. So it would appear that this share needs at least another 5 years to become an earnings driven enterprise and to be paying dividends. At the moment, all this company is achieving is accumulating larger and larger losses and tapping shareholders for more and more cash, with directors paying themselves hefty wages! I wonder what the justification is on approaching shareholders for more and more cash?, for on existing and current prospects this is not worth 43p/share. 75p is many years away yet! 30p is more likely until the next cash call!

[portside1] 16/6/2017 06:05

good luck I will keep my eye on them

[wetherspoons12] 15/6/2017 17:05

Sorry portside1 been a bit busy HaHa... For what its worth .... DPP seem to have got their act together now and are building the busness. Not in profit yet, but are increasing the franchised side of the business nicely. IMO they are worth a punt. I bought a while ago, so my average is 27p currently and i'm folding till they get to 75p ... maybe a while yet.

[cannonbeach] 15/6/2017 13:22

This is a buy, lock up and leave share IMO. GL

[cannonbeach] 15/6/2017 11:41

I see, thought you were speaking in tongues. Do you own DPP?

[portside1] 15/6/2017 11:35

WAITING FOR A NEW POSTER HE APPEARS TO BE LOST

[cannonbeach] 15/6/2017 11:31

@portside1 - ???

[portside1] 15/6/2017 11:10

weatherspoons 12 were are you ,

[portside1] 14/6/2017 06:03

weatherspoons 12 looking at these , did you have a good night

[cannonbeach] 13/6/2017 12:36

Not looked at DP Eurasia yet, not sure I like the political situation in Turkey/Russia enough - seems a touch too risky IMO and there's also the currency risk (but depends on how they hedge it I suppose). That said, Poland hasn't been plain sailing, either as of late.

[hybrasil] 13/6/2017 07:33

I'm quite relaxed about this and have just bought quite a few more shares to maintain my position I'm looking at dp Eurasia has anyone else had a look/ have any views

[guernseymoney] 12/6/2017 15:08

@remarkomsoc The dilution? I dunno if painful the right word. I'd say "expected". Or how about "painfully expected?" Suppose it comes with the territory of owning a thinly capitalised company with huge capital costs. That said, the growth trajectory is going to be huge (I hope). I'd rather own a small amount of something big, than a big amount of something small... Holding and will top up again at 40p if it drops that far.

[guernseymoney] 05/6/2017 09:30

FT today: [incorrectly referring to "second"] A second Domino’s Pizza company will be joining the London Stock Exchange next month, hoping to share a slice of the success that has seen shares in its peers skyrocket in recent years. Domino’s Pizza Eurasia, which controls Domino’s franchises in Turkey, Russia, Azerbaijan and Georgia, will join the LSE with a premium listing next month.Try to keep track: DP pays a share of its total sales to Domino’s Pizza Inc, the US owner of the brand. It will join Domino’s Pizza Group – which controls franchises in the UK and parts of western Europe – on the London market.UK-listed DPG’s shares have risen an average of 57 per cent a year since it first listed in 1999, notching up a not too shabby 3,346 per cent rise over the period. Domino’s Inc is up a relatively meagre 1,515 per cent since its IPO, but since it joined the market more recently that adds up to an even better annual growth rate of 75 per cent.Still, both of them are left in the shade by Australian franchisee Domino’s Pizza Enterprises which, even after a recent dip, has risen 93 per cent a year since 2005.DP’s current owners – private equity group Turkven and chief executive Aslan Saranga – will sell some of their shares for the IPO, and the company will raise an additional £20m in new shares to help fund new store openings in Russia. The company expects to have a free float of at least 50 per cent. In preparation for the flotation, DP has appointed Boohoo chair and former Selfridges chief executive Peter Williams as its new chairman. DP is currently the largest pizza delivery company in Turkey and the third-largest chain in Russia, with a total of 571 directly-owned and franchised stores.It reported sales of TRY647.4m (£143m) in 2016, and adjusted earnings of TRY75m (£16m) in 2016.

[guernseymoney] 31/5/2017 13:04

Good stuff hybra. bigboyo - I suppose the "financing" of the sub-franchisees has other benefits, supports the commissary costs etc, but agreed that it would be nice to free up the cash from acting as banker.