Duke Capital Share Discussion Threads

[btgman] 09/3/2021 12:25

Must admit I do like Duke's business model market hasn't really grasped resilient the business model has been through covid pandemic. As we start to emerge out the other side the opportunities appear to be a plenty for Duke and their underlying revenue is pointing to significantly higher than 2p per share per annum dividend. Also overheads are largely fixed so all new deals will drop to the bottom line.

If you look at the chart from float to March last year and consider income is now close to pre-covid levels this has an awful long way to go. Very much looking forward to the next dividend declaration it should be ahead of the 0.5p previous.

AIMHO
GLA
BTG

[paulo435] 09/3/2021 09:04

Cheers Fred, I quite like the model and the concept hence why I bought in not long back. Good to see it’s starting to warm up here re the SP

[fredfishcake] 08/3/2021 20:34

Duke presented at Mello tonight. I must say I find Neil Johnson a poor presenter, but on the plus side he's the opposite of a slick snake-oil salesman - I hope he's just good at his job.

One thing I've never managed to reconcile is the balance of repayments vs interest, and this may have just been me being dense - but the example was given tonight that a company might borrow for 30 years at a quoted rate of 12-14%, which you might think is junk territory. However, they're actually paying an interest rate of 'high single digits' with the rest being capital repayments - effectively it's like a repayment mortgage. There is an element of flex in this, with a +/- 6% of the repayment depending on how well the company is doing - again, it's not clear whether this relates to the overall amount paid, or the 'interest rate' element of the payment.

The selling point here is that the company's costs are largely fixed, and they could double or treble the amount they lend without incurring more costs.

Hope that's of use - at least I'm a little clearer in my understanding now.

[speny] 08/3/2021 16:42

We certainly have not seen many days with the volume of approx 10m as we have seen today, not without news or IC tips.

[sphere25] 08/3/2021 14:23

All trades are naturally an exchange between buyers and sellers, but considering where the bid finished last week (34.5p) and how it has moved today, buyers have bid up the price to meet sellers in size at that 35.25p level i.e. a bullish sign in taking out stale bulls who have kept the price in the doldrums.

Furthermore, this all ties in with the recent price moves, where there clearly has been significant demand for shares (with the price continually being bid up), as buyers in size come into gobble up shares and thus the chart continues to make new recent highs.

If we look at recent volume here too, it can be seen just how much is required (particularly relative to average daily volumes) to get a share price shifting higher from the doldrums.

In the event such volume had not come in, no doubt this share would not have broken the key resistance just above 30p, and would be sat bouncing around sideways as investors wondered just how much buying was needed to break higher. As per many others, it's just another example of how much can be needed to clear out major stale bulls to allow sustained positive price moves.

All imo
DYOR

[kadvfn1] 08/3/2021 13:24

I'm seeing a lot of unknown trade at 35.25p. Does anyone know if this is buy or sell?

[sphere25] 08/3/2021 13:03

Interesting chart and juncture.

Price currently 35.35p and threatening a significant breakout. The volume is heavy (some large trades and it looks like someone is buying in blocks of 50k at the moment) too with 8.7m traded so far. A breakout on such volume would be bullish.

All imo
DYOR

[juuunx2] 07/3/2021 16:35

Thanks Paulo very interesting much appreciated

[davidosh] 07/3/2021 14:01

Just a reminder for shareholders and prospective investors that Duke Royalty will be presenting at the next Mello Monday investor show tomorrow evening...



There will be over 600 investors attending and these are very popular shows with three company presentations, fund manager and investor interviews and panel sessions including the popular Mello BASH (Buy, Avoid, Sell or Hold)This Monday BOTB, SNWS and PCIP will be analysed

Not to be missed and use the code MMTADVFN50 to get 50% off tickets and there will be a Q&A session after each company presentation and unanswered questions will be answered by the company and reproduced on our website.

[paulo435] 07/3/2021 09:15

Here’s the relevant part of the article guys from the FT :
“For the first time in 35 years, I am withdrawing my ISA dividend income, so new purchases have to be funded from sales or takeovers. Thus Treatt has been slightly trimmed, rather more so Legal & General, to fund two new purchases — Duke Royalty and Tatton Asset Management.

Duke, under experienced Anglo-Canadian management, provides an unusual form of finance for established companies through royalty or revenue-based financing, somewhat akin to corporate mortgages.

Current financial pressures on business are providing an increased flow of opportunities for Duke, enabling the group to selectively make perhaps four new investments a year. Tatton offers platform-based discretionary fund management and mortgage services to UK financial advisers. I expect both companies to grow over the medium term.”

[brucie5] 06/3/2021 15:38

I'm afraid I read it in hard copy only. So you'd need to look for it online, and behind the paywall. It wasn't an extensive note, but part of his rotation into value and income, I believe. As it has been of mine.
;)

[kadvfn1] 06/3/2021 14:21

Could u post the article please. I'm not a subscribers but would be nice to read what he said. Thanks

[owenski] 06/3/2021 13:41

Business is recovering, the downside looks safe, income should also improve over time and recent deal on that yield is decent.

[brucie5] 06/3/2021 13:07

And John Lee has just added some in the FT today.

[kadvfn1] 02/3/2021 12:36

Just been re-tipped by ST

[johnroger] 01/3/2021 17:07

-" The investment is expected to be immediately accretive to Duke's earnings and based on the increased total investment of GBP12.0 million into UGG, Duke will be entitled to higher distributions of approximately GBP1.7 million per annum, beginning in March 2021, which represents a pro forma cash yield of approximately 14.1%"

[bg23] 01/3/2021 12:18

I've held these since just after float and bought them again late last year. I continue to re-invest the dividends and fully expect to be holding these for years to come.

I think its undervalued mainly because it operates in an area of the market that's not well understood and i'm looking forward to watching this continue to grow.

[btgman] 01/3/2021 08:30

Another great follow investment for Duke underlying income is significantly pointing towards underlying 10% dividend return

AIMHO
GLA
BTG

[davidosh] 27/2/2021 00:46

Just to let shareholders and prospective investors all know that Duke Royalty will be presenting at the next Mello Monday investor show on the 8th March..



There will be over 600 investors attending and these are very popular shows with company presentations, fund manager and investor interviews and panel sessions including the popular Mello BASH (Buy, Avoid, Sell or Hold)

Not to be missed and use the code MMTADVFN50 to get 50% off tickets and there will be a Q&A session after each company presentation and unanswered questions will be answered by the company and reproduced on our website.

[rik shaw] 21/2/2021 09:51

MOS tip today

[btgman] 19/2/2021 23:16

Simplywallst has Duke fair value at 38p I have it at 42p



AIMHO
GLA
BTG

[btgman] 18/2/2021 12:48

Interesting podcast Twin Pete's. I think the debate around Duke underling quarterly Royalty of £2.5m which appears to be increasing and the likely impact this will have on the dividend. I will be surprised if we do not see an increase in the April dividend.

The share price is currently at circa 14 times dividend as are the 2 Canadian Royal companies that I looked at. Assuming the dividend increases one would expect the share price to follow. Covid aside Duke appears to have been sat at over 40p for most of the last 4 years and quite significantly higher, I don't really see any reason that is isn't back above these levels in the near term.

AIMHO
GLA
BTG

[thewheeliedealer] 17/2/2021 21:41

Hi everyone,

My mate Peter @Conkers3 and myself did a ‘Twin Petes Investing’ Podcast last week and part of our discussion includes DUKE which I hold myself and I actually bought some more of today.

As always we also chatted about loads of other Stocks and Ideas for research and a fair bit of educational stuff with regards to Investing and Portfolio Management. We also start off with quite a bit about the overall Markets and where they are most likely heading.

Anyway, if you use Youtube, Apple, Audioboom, Overcast, Google+ or Spotify you can find it under the 'Conkers Corner' Channel (you want Podcast TPI 42) and you can find it on Soundcloud at the link below.

I hope you enjoy it and find it useful, we try to keep them light and they are totally unscripted, not like all the stuffy financial fodder you are probably more used to !!

Cheers, WD
@wheeliedealer

[bwm2] 17/2/2021 07:20

I omitted to add, started 1n 1985,81 employees, innovative products ( eg charging lamp posts). Without been privy to the number,s I suspect a good deal for vendors, workforce MBO team and Duke Royalty. Look forward to seeing more similar transactions

[bwm2] 16/2/2021 19:53

RogerRail
This type of acquisition of a SME is not fundable by bank debt. Banks' appetite the lend to quality SME trading companies to fund their business needs is as dire as ever never mind funding the purchase of goodwill. This target "Fabrikat (Nottingham) Ltd" last accounts were to Dec 2019
Sales £12m
Op Profit £1.1m
Int (£22k)
PAT £960k

FA £1.2m
Cash £940k
NCA £1.7m
Bank debt £320k
Hire P £274k
NA £2.4m

No rent, minimal directors fees £47k inc pension, minimal debt, dividend £518k

Solid company, the likes of which are the backbone of this country.