Dukemount Capital Share Discussion Threads

[drmaccers] 11/5/2020 17:40

You've not made it unless random derampers appear with zero knowledge and embarrass themselves

[roger207] 11/5/2020 16:30

How urgent do new Care Homes need to be built after so many elderly poorly looked after during Covid-19 crisis?

[ladders1] 11/5/2020 16:11

Way way overvalued..

These deals which are talked about are pie in the sky.

Getting Universities to agree to nomination agreements is extremely difficult itself. To get them to sell eheirland is another. Even if a deal does come off, its got together planning etc. Its 2-3 years away.

[tidy 2] 11/5/2020 15:59

Needs to retest 0.7 here. Gla.

[ladders1] 10/5/2020 23:02

How is this company valued so highly?

They are developing 17 apartments in West Darby!?

[1savvyinvestor] 10/5/2020 18:22

It's not my thread so can't

[macmuck] 10/5/2020 14:23

Ta for that Isavvy. Suggest you put this in the header!?

[ivor hunch] 10/5/2020 12:42

Many thanks for an excellent post. I have been in DKE since the 0.35p days and have seen it rise and fall several times testing 1p before falling back. I think the concept is highly original and could certainly work, and if it does the share price will soar. We do need confirmation that at least one project will go ahead. In the meantime I sit quietly on my 3 million shares and wait....
Ivor

[1savvyinvestor] 10/5/2020 10:22

DUKEMOUNT CAPITAL PLC
#DKE

Price 0.8-0.85 at time of writing 4/5/20

What does DKE do?
First bit of essential DD is the audio file below from a company presentation about 1 year ago. It’s a bit long but you’ll understand the company much better after.


From the website “The purpose of the Company is to acquire, develop and manage portfolios of properties which may in some cases be sold onto institutional investors on a sale and leaseback basis and which are already backed up by long-term operational tenants at a rent, which where possible, is CPI linked”

The first of these are at Wavertree and West Derby in Liverpool. Wavertree is in the final completion stage (hopefully finished in the next month or so) and West Derby is on route to be completed by August. The company received a bonus of £500k-£1mill on completion of each project so in the next few months they’ll have at least £1mill more cash in the bank.
Sounds like a great business but this part isn’t the reason to buy. They are making a step change in deal size and scope.

The next stage is Independent Retirement Living and Extra Care involving universities nursing students.
“Dukemount is in advanced discussions with a number of parties involved in this area and has once again partnered with architects HLP Design who are internationally renowned for their work in this sector and MDA consultants. To extend the range of its long-dated income proposal, and the size of the projects, the board has completed its due diligence on the retirement and extra-care sector creating DKE Care and Leisure Ltd (DCL). DCL will not be the operator in either of these two sectors but will seek expert operators in each sector on a project-by-project basis. 
An interesting development in these talks has been with universities who offer nursing degrees. We have proposed developing retirement villages and extra care accommodation either on campus or close to the universities, potentially freeing up capital for them and offering valuable practical work experience for their students”
Next essential piece of DD is hxxp://dukemountcapitalplc.com/documents/DKE%20online%20pdf%20v6.pdf



Layman’s terms
DKE bring together universities who offer nursing degrees and Pension Funds who want to buy long term income. Everyone benefits.
The university gets new nursing student accommodation built (which makes it more attractive to students) and a care home on or near their land in which the nursing students can gain first hand nursing experience (makes them more attractive to students). They also gain financially from land sales and Care home profits. The pension funds are able to buy a very long dated income lease on the care homes to have a fixed return over the long term. This is something all pension funds want but is increasingly hard to come by.
From the audio file the deals are around £150-200mill and DKE get around 20% of this per deal. There are at least 12 in the pipeline and 3 basically finished. At the time of the presentation pdf “Dukemount presently has three financiers willing to forward fund each deal”. So we know there are at least 3 pension funds fighting it out and more than one deal on the table.
Once one deal completes the likelihood of more completing dramatically increases.

Who is the Team for the University Deals?
Architect – Hansell Lloyd Partnership.
They have literally written the book on Design for Dementia in cooperation with a number of universities. hxxp://www.hlpdesign.com/publications/257-design-for-dementia
There isn’t a better architect to design these homes or university accommodation.
Project Management – MDA Consulting
hxxps://www.mdaconsulting.co.uk/projects - Have vast experience in Health and Eduction building
Legal and funding – Hamlyn Reeve
Alfred Long who runs Hamlyn Reeve is on the board of DKE Care and Leisure (the sub of DKE who are doing these deals)
hxxp://hamlynreeve.co.uk/services.html - Again there is vast experience in this very niche field
Builders – Likely to be John Turner Construction
They are the builders on the current projects. hxxps://www.johnturner.co.uk/sectors
Again vast experience at building multimillion£ projects for universities and healthcare.
COVID Risk
Clearly covid is a risk for all businesses. It can cause time delays. However conversely it may play into DKE’s hands…
Universities are losing overseas fee paying students and urgently need additional income. There is also a push for extra nurses and for those nurses to work in care homes.
Pension funds are finding it difficult to buy long term income with interest rates being so low.

Placement risk
DKE has just undertaken their only placement form listing on the MAIN MARKET (NOT AIM).
This was primarily to employ additional staff to complete DD on additional deals. In the next few months they will get £1mill+ from the initial 2 properties completing so I think the risk of additional placement is extremely low. If there is one it will be for a very good reason. Indeed DKE is up 100%+ from this recent placement.

Overall
This is a main market listed company with an mcap of £3-4mill. They have a proven track record of property develpement and have gathered together a best in class team to complete multiple large deals. Each deal is a x10 from the current size and if 1 happens the likelihood of more is virtually certain. This is a share for the ISA+SIPP and to watch and wait. It truly has x100 bagger potential

[338] 06/5/2020 15:45

After waiting few months, we are here 🚀

[1savvyinvestor] 06/5/2020 14:47

I take it you don't like successful people ?

[roger207] 06/5/2020 10:53

Anybody want to pay 1p for Mr. DART's shares? Receiving over a quarter of millions £ for unfinished projects. Nice!!!

[roger207] 04/5/2020 14:42

the Executive Chairman, Mr Geoffrey Dart, received a bonus of GBP80,000 converted to shares of 26,666,666.
He can sell from tomorrow for £200,000+ More dilutions ahead to pay the cost for new projects with profit to be given straight to the chairman and directors.

[1savvyinvestor] 04/5/2020 10:48

Something certainly seems to be brewing

[338] 04/5/2020 10:44

A new contract is going to be agreed?

[apfindley] 28/4/2020 12:32

The same old chestnuts.Been hearing these ridiculous 150m 300m stories for 3 years now. It's all pie in the sky fantasy to pump the stock for a certain twitter pumper crew. There has NEVER been any verification or explanation of those figures.Pure pump.

[hibberts] 28/4/2020 12:28

The new projects the company are looking at are 150m / 250m a piece with a 15% profit margin.

[jev1] 28/4/2020 12:21

Need to do better research than that.

Myles McNulty just taken another 9 million shares with reasoning why:

[ssrover] 28/4/2020 12:14

nah just twitter ramping crew

[stux] 28/4/2020 12:03

News on all their deals I hope??? Nice to see it rise, goes up quick!!!

[1savvyinvestor] 20/3/2020 09:09

Could do with a conference call with investors now AGM behind closed doors