Dukemount Capital Share Discussion Threads

[ivor hunch] 28/9/2017 15:59

So the marketcap listed on the LSE website is wrong. At 0.7p it should be £2.3 million not £1.64m ?
Are all 338,300,000 shares issued?

[arthurdaley69] 28/9/2017 15:35

I see the number of shares in issue at 338,300,000.

Therefore £8m divided 338.3 = 2.36p on my reckoning???

[ivor hunch] 28/9/2017 15:03

I have a slight problem with Optiva's maths. The present price is about 0.7p and according to the LSE it is capitalised at £1.64 million at that price. To get the share price to the target price of 2.3p means multiplying 0.7 by 3.28 (2.296p) and multiplying the present marketcap by the same amount takes us to a marketcap of £5.3 million not £8 million.
If the marketcap reaches £8 million the share price would be 3.45p.
Am I right or am I missing something?
Ivor

[arthurdaley69] 28/9/2017 13:58

Market Maker....you're a star!! x x x

[market master] 28/9/2017 13:49

Dukemount Broker Note
Optiva Summary:

• Demonstrating execution and near term profitability: This is exciting news from DKE because they are a step closer to delivering profits of at least c.£1m from their first transaction. This demonstrates excellent execution from the management. It is important to highlight that the DKE could own the properties on a freehold basis thereby strengthening their balance sheet and underpinning the value of company.

• Favourable market dynamics: There is an imbalance between demand and supply for long-dated income. The demand for long-dated income could be in the magnitude of £1.6 trillion, which is almost 5 times the current market value and the supply is expected to lag behind demand for long-dated income. Therefore, we are confident that there will be institutional appetite for these type of properties because the majority continue to seek alternative inflation linked investments in a low yield environment.

• Valuation: DKE benefits from a flat expenditure structure and if we assume a conservative P/E multiple of 8x, with net earnings of £1m, it will imply a market value of at least £8m or 2.3p as the target price over the next 12 monthsDukemount Broker Note
Optiva Summary:

• Demonstrating execution and near term profitability: This is exciting news from DKE because they are a step closer to delivering profits of at least c.£1m from their first transaction. This demonstrates excellent execution from the management. It is important to highlight that the DKE could own the properties on a freehold basis thereby strengthening their balance sheet and underpinning the value of company.

• Favourable market dynamics: There is an imbalance between demand and supply for long-dated income. The demand for long-dated income could be in the magnitude of £1.6 trillion, which is almost 5 times the current market value and the supply is expected to lag behind demand for long-dated income. Therefore, we are confident that there will be institutional appetite for these type of properties because the majority continue to seek alternative inflation linked investments in a low yield environment.

• Valuation: DKE benefits from a flat expenditure structure and if we assume a conservative P/E multiple of 8x, with net earnings of £1m, it will imply a market value of at least £8m or 2.3p as the target price over the next 12 monthsDukemount Broker Note
Optiva Summary:

• Demonstrating execution and near term profitability: This is exciting news from DKE because they are a step closer to delivering profits of at least c.£1m from their first transaction. This demonstrates excellent execution from the management. It is important to highlight that the DKE could own the properties on a freehold basis thereby strengthening their balance sheet and underpinning the value of company.

• Favourable market dynamics: There is an imbalance between demand and supply for long-dated income. The demand for long-dated income could be in the magnitude of £1.6 trillion, which is almost 5 times the current market value and the supply is expected to lag behind demand for long-dated income. Therefore, we are confident that there will be institutional appetite for these type of properties because the majority continue to seek alternative inflation linked investments in a low yield environment.

• Valuation: DKE benefits from a flat expenditure structure and if we assume a conservative P/E multiple of 8x, with net earnings of £1m, it will imply a market value of at least £8m or 2.3p as the target price over the next 12 months

[arthurdaley69] 28/9/2017 13:35

Hi there Mkt Mker...can you post the synopsis??

[market master] 28/9/2017 13:21

Broker note stating target price 2.3p

[ivor hunch] 28/9/2017 11:09

The future of £1 million return comes from the RNS:

"The site is being developed for the fast-growing supported living sector and will include 17 apartments and 3,200 square feet of retail space which is also included in the Larch agreement. Dukemount subsidiary DKE (North West) Limited, purchased the site subject to planning permission which has since been granted thereby enhancing the value of the site and facilitating the funding of the building costs. The Board will have the option of inviting institutions to make an offer for the property and will be targeting a sum in the region of £5 million plus. At this level Dukemount is expecting to receive a net return in excess of £1 million."

I think the plan is to sell on the investment but maybe retain the freehold, mentioned in previous company announcements.
Ivor

[arthurdaley69] 28/9/2017 08:44

Not sure where you get your £1m profit from Mkt Master?
What they are doing in this deal is receiving an income of 6.5% from the LHA (plus CPI), and sell that income into an institution at a yield of 5% (plus CPI), thus locking-in 1.5% per annum of guaranteed income. The property is let on a full repairing and insuring lease so all maintenance costs will be borne by the LHA.
The beauty of this deal, is that it de-risks the project, provides guaranteed and growing income (the CPI affects the bigger figure more than the lower), and if capital values increase, they have extra value locked-in.
Great deal, first of many, let's hope.

[market master] 28/9/2017 06:31

WOW check out the RNS another potential £1m profit thats £2m in two deals think 5p will be here much sooner than many think

[arthurdaley69] 27/9/2017 14:46

Thanks for that Ivor; I tend to agree with you; tiny market cap targeting boring, steady income.
Know most bulletin boards are aimed (no pun) at speculative e+p's, miners, pharmas and tech, but this is actually a company that is not looking to constantly raise capital, wants to pay a dividend, and has an achievable plan.
Not sure about 4 times this level, but a slow gentle creep up, with decent upside imvho

[ivor hunch] 27/9/2017 07:41

apf - I read your posts on BLU with interest. However I am not sure that you are correct about DKE. I don't think it is simply a pump and dump stock promoted on Twitter. I am in property myself and have studied DKE's business plan - it certainly makes sense and plays on the differential between yields on social housing and those obtainable elsewhere by institutions. It is clearly deal driven and DKE will not have a large asset base. However it could be cash generative if it can maintain a steady flow of deals.
The marketcap is tiny. With a couple of deals in the pipeline its marketcap could be around £5 million, maybe x4 or so the present price. Some years ago I bought into Sigma Capital which is also a deal driven outfit working in the Private Rental Sector. Its market cap was then £5 million - it's £66 million now. So I think it's worth riding DKE for the moment.
Also as Market Master points out it's listed on the main market so less likely to be a typical AIM cowboy stock.
Ivor

[market master] 27/9/2017 06:53

#DKE the RNS regarding the second deal should land any day now which will give the share price an additional boost.

[market master] 26/9/2017 21:30

Another good day for the share price with 69m traded that's around 21% of total shares in issue. There are only around 160m shares in free float...

This company is not listed in AIM as it is listed on the main LSE market so much more stringent rules and class of company.

I expect the share price to be around 1p this week and much more when the next deal RNS comes out.

[dudleym1975] 26/9/2017 13:43

Apfindley correct

[apfindley] 26/9/2017 10:38

Being pumped by the twitter crew just because it has a low market cap. They will exit with their profits whilst you buy their shares. Same as every other stock they pump, they exit into the rise and disappear onto the next stock. Wasn't the people's operator tpop supposed to be a cert 10 Bagger according to Twitter. It has since lost a further 70% since they pumped it. I could list many many stocks... .......... Beware of twitter Pumpers, they do it for THEIR gain, not yours. .........

[purple11] 26/9/2017 09:08

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GETTING U IN

[bullet ant] 26/9/2017 08:26

My baby is making proud again, 2 days in a row. what have I done to deserve this?


BA is always up to no good :(

[bullet ant] 26/9/2017 08:00

C'mon Duke me proud spike to 1p

[market master] 26/9/2017 06:29

DKE- a ten bagger in the making, worth researching!

[ivor hunch] 23/9/2017 10:16

There is an interview on Voxmarkets with Paul Gazzard non-exec director of DKE:
hxxps://www.voxmarkets.co.uk/company/DKE/
He outlines the business model which is essentially based on the differing yields on social housing. DKE will package up high yielding properties and sell them on to institutions looking for yield. The deals will be back to back so not financed by DKE. If it works it does look interesting and there are a couple of deals in the pipeline.Paul Gazzard highlights one reason for buying the shares namely the very low marketcap.
On the other hand TW on Shareprophets points out that two of the directors (one now resigned) have had unsuccessful floatations on AIM before. He is very cynical about DKE, but he is cynical about lots of companies except those in which he is invested.
My view is that it is an interesting idea and I am happy to ride the shares for the time being. The announcement of a second deal (which is supposedly imminent)should push the price up.
Ivor

[cudmore] 22/9/2017 15:32

Was that a sign towards close?? Trades of 1 share. Many say that's a code there is an RNS on its way!

[fillipe] 22/9/2017 10:36

Rise returning....bid/ask 0.50p v 0.55p, although obviously dealable within.
Looks good for a steady upward path,

f

[ivor hunch] 21/9/2017 15:49

Off a bit today.