Dukemount Capital Share Discussion Threads

[market master] 20/9/2017 12:28

Nice steady rise here can see the share price getting nearer to 1p before the news of the next deal is announced

[purple11] 19/9/2017 08:57

...et Dumpe.....

[fillipe] 15/9/2017 15:07

Loads of trades throughout the day for DKE showing on L2.

0.5679p - more or less the full ask, paid for 329k....1559hrs,just now.

f

[colin12345678] 15/9/2017 11:56

5 million buy in 2 trances just printed

[ivor hunch] 15/9/2017 08:08

Thanks for the info

[market master] 15/9/2017 06:52

Mr. Martin Gallagher serves as Managing Director of Construction & Commercial Refurbishment and Director at J. Tomlinson Limited.

[ivor hunch] 14/9/2017 15:59

Does anyone know anything about Martin Gallagher who bought 14 million shares (4% of the issued equity) a couple of days ago?

[arthurdaley69] 14/9/2017 07:20

Nesty, I am not sure you are following their actual model. The idea is to not raise capital to buy the properties, but back-to-back a purchase and sale.
Large Institutions are chasing income, and the income generated from guaranteed contracts from supported living are way too small for any serious player. DKE want to package the income from several properties, and then sell that income to Pension funds. The differential between the income the LA/HA pay to DKE and the level DKE can then package and sell to the Institutions is how they make their money. They are basically looking to keep 1-2% of the revenues, whilst retaining a property which, over time, may appreciate in value.
If the model works, there will be no need to raise capital; the deals get signed with the Local Authority, and simultaneously signed with the Institution.
The key to whether this becomes an investment that works for humble players such as myself, is their ability to make the model work.
If they can, this will be a safe and mildly boring play, that pays a dividend; one targeting a sensible return.
Very early days, and I know the Development site announcement has inherent risks on delivery and cost over-runs, but if they sign the housing association they will be able to sell the income.
I am a holder for the time being.

[nesty1760] 13/9/2017 18:15

The use of Housing associations. When UK brexit the grant money, which housing associations get will be vastly reduced by the Governmemt. This could vastly impact on DKE?
I do a lot of work for Housing associations and they very much resigned things will change in next year / 18 months for them. The market is very cut throat!

My main concern here with DKE is that the model is just primed for being a PLC. Would they want to do this model as a Ltd. Probably not as needing capitial to buy these properties. I can see placings being used quite a bit in the future.
It sounds like DKE are a glorified housing service provider. I can see maybe in the near term words like 'in challenging times' being used in business updates in the future.

Another thing is the people who keep pumping this on twitter. It appears very desperate to get come buying sentiment engaged. DKE on social media pumping, has all the smacks of YOLO, which I called spot on. We all know what happened there.

I am not saying it won't work. This is main market and not AIM, so maybe some stability there?
Though many pi's really need to do their research. See how long you want to remain invested in this sector. Also understand who is trying to get you invested in the first place!

[ivor hunch] 07/9/2017 10:33

New RNS out today. The proposed acquisition looks set to go ahead and the properties will ultimately be sold on to an institution throwing up an estimated net return of £1 million to DKE - which still capitalised at around £1.5 million.
Could be interesting!
Ivor

[ivor hunch] 11/8/2017 08:38

I've come aboard with a small purchase today and will probably add over the months. I like the look of the company and what it's doing. Being in property myself I can see the potential. Some years ago I bought into Sigma Capital SGM at 6p and they now stand at 72p having been over £1. I still hold SGM. I think DKE could prove a similar investment but for the long term. The market Cap is tiny, the management is proven and despite the possibility of a softening in property prices the business plan looks sound.
Ivor

[dudleym1975] 10/8/2017 10:27

Now on losers list

[arthurdaley69] 10/8/2017 10:23

Thanks someuwin...I did not know how to incorporate these into my thread!!

[arthurdaley69] 10/8/2017 10:22

Dudley, sorry to question you, but have you read what they are doing?

They are not a traditional property play, but are looking to get guaranteed (and index linked)income from Housing Associations, and at the same time as purchasing the property, create a sale-and-leaseback with institutions.

I wholeheartedly agree that UK property is susceptible to a correction, but they are trying to create a portfolio by locking in the differential between the income from the Local Authority and the end user, a financial institution.

For example, they buy a property for £5m, that guarantees say 6% income from a HA, then grant a long lease to an institution paying them 5% per annum.

The reason to do this, is the packages are too small for most funds, and DKE get to keep a small percentage and de-risk.

Again, if you know different, please let me know!

[someuwin] 09/8/2017 08:47

Currently No. 4 on the top risers list.

[dudleym1975] 08/8/2017 13:43

This is a ramped dog by the usual suspects A company investing in property where property crash is looming

[someuwin] 08/8/2017 09:05

Needed a thread with charts.

[someuwin] 08/8/2017 09:02

!FOLLOWFEED

[baggytrousers] 07/8/2017 11:50

Useful interview was posted on Share Talk back in April. If you look at their 'intended' value of acquisitions (up to £100M) versus Mcap... you can get why some people are a little bit excited about this one...

hxxp://www.share-talk.com/share-news/geoffrey-dart-chairman-of-dukemount-capital-plc-londke-interview/

[dudleym1975] 07/8/2017 07:03

This company buys properties and wants to rent themWouldn't invest here if this was the last company on Aim.

[arthurdaley69] 06/6/2017 15:39

Be interested to hear views on this company that appears to have floated under the radar of many.
The shares are trading at below the issue price of 0.5p, and if they manage to execute their model, they will be a really rare thing in AIM-world; one that has a reliable income, backed by local authority 20 year plus rentals, the benefit of any upside in NAV, and are looking to pay a decent (and growing) dividend.
Perhaps the time to pull the trigger will be once they have back-to-backed their first deal to see if the model is deliverable, but imvho, this maybe one to watch...alternatively I am sure you can find some miner in the third world without a license and not even a hole in the ground to pour money into!

[arthurdaley69] 06/6/2017 15:34

The Company intends to develop and manage a portfolio of properties that are sold to some
of the World's largest Institutions on a sale and leaseback basis with long-term operational
tenants such as Housing Associations in the supported living sector. The rent will be CPI
linked where possible to ensure the Institutions receive sustainable yields over the life of the
property, which can be up to 50 years.
The transactions the Company will complete are expected to be 'back-to-back' transactions
where the Company will acquire a freehold and simultaneously grant long-term head-lease
with leaseback to Institutions. Such financial arrangement would be immediately profitable
due to the differential between the rent paid to the Company and the rent payable by the
Company to the Institution under the terms of the leaseback.
The properties will create long-term inflation linked cashflows backed by freehold real estate.
Such assets are in high demand by Institutions due to the stable, recurring and long-term
nature of income.
A 2016 report from Schroders noted that the UK private sector pension liabilities are
currently valued at over £2 trillion on a buy-out basis, which suggests the potential demand
for long-dated index-linked income could be of the magnitude of £1.6 trillion.
The company's directors are the largest shareholders, and they intend to pay a dividend as soon as possible from operations targeting north of 5%.