Dukemount Capital Share Discussion Threads

[futuredlighter] 25/10/2017 11:20

No panic needed as this is a long play but well down after recent news. All part of the planned strategy. Great entry here for anyone that wanted

[futuredlighter] 16/10/2017 22:35

Looking forward here to next piece of news.

[arthurdaley69] 12/10/2017 09:34

Thanks 113Mike.

Reads positively enough to me; they are delivering on their stated strategy; still capped sub £2m and with a net return from project number 1 in excess of £1m, they look very reasonably valued IMHO.

Exciting future ahead.

[113mike] 12/10/2017 08:04

Decent anough RNS?RNS Number : 3690TDukemount Capital PLC12 October 201712 October 2017Dukemount Capital Plc("Dukemount" or the "Company")Update on Proposed Second AcquisitionDukemount Capital plc, the Real Estate Development Company in the property sector, announced in August that due diligence had commenced on a second acquisition in North West England and that process has been successfully concluded.Since the original announcement of the acquisition, Dukemount has been in talks with a number of housing associations, who have expressed an interest in the project and the board are currently in talks with them to get the best deal for the company and shareholders.While we are in discussions with the housing associations, we have signed a four-month option-to-buy on the property and we already have a firm quote on the refurbishment costs. The next phase in this process will be agreeing a long-term lease of up to 50 years, which is CPI linked, with one of the housing associations prior to closing on the property following which a full refurbishment will commence.Dukemount Executive Chairman Geoffrey Dart said, "The announcement of the proposed second acquisition has generated interest from other housing associations which we are pursuing. The demand for this type of development in the supported living sector from the residential, local authority and institutional markets remains strong nationally and I am pleased at the response the original announcement of this deal has created. In order to get the best deal for our shareholders we are pursuing all enquiries we have received thoroughly and in order to secure the property, we have signed a four-month option-to-buy subject to Dukemount signing a lease with the most suitable housing association. I look forward to updating shareholders once a deal has been concluded.

[arthurdaley69] 03/10/2017 15:51

Thanks again Mkt Mstr; the reason this BB was headed "Safe and Steady" was because of the last paragraph.
Management has a vested interest in making this work, as they would be the biggest beneficiaries of positive cashflows and a yield of anywhere near 10%.
Intraday share price moves aren't massively important to me in this stock; I really do believe that it is a decent medium term hold, and with dividends targeted, I am not selling for anytime soon.

[market master] 03/10/2017 07:34

Can see another blue day here today

[market master] 02/10/2017 13:17

Good to see DKE holding on to gains, that 3.1m buy £22k obviously helped. Think share price will form a base here and gradually move upwards over coming days.

[apfindley] 29/9/2017 10:13

Ivor hunch. Your points have been noted. I've decided to throw a small ammount into this today as it does look promising if they deliver.

[market master] 28/9/2017 17:14

Gary Middleton Public Relations Professional


Another huge volume day

A bit of profit taking and “buy the rumour, sell the fact” afoot this morning in Dukemount Capital (@dukemountcap) following some record rises and record share trading this week. Today they revealed signing an agreement-to-lease with Larch Housing Association for a 50-year term and CPI linked, which will initially pay £234,000 per annum.

This now places the development in another league as institutions/pension providers will be attracted to the long-dated income which they are screaming out for.

[market master] 28/9/2017 17:11

Significant Shareholders

Dukemount Capital plc's shares are traded the London Stock Exchange Main market.

Allotted: 339,500,000 Ordinary Shares of 0.1p each.

No securities are held as treasury shares

41.24% of Dukemount Capital plc shares are not held in public hands.


Significant Shareholders

As at 11 September 2017, as far as the Directors are aware, the following shareholders are Company Directors or interested in 3% or more of the issued share capital of the Company.

Chesterfied Capital Limited * 75,000,000 22.09%
Continental Natural Resources Limited 57,000,000 16.79%
Martin Gallagher 14,000,000 4.12%
Peter Redmond 12,500,000 3.68%
Timothy Le Druillenec 4,000,000 1.18%
Paul Gazzard 4,000,000 1.18%


* Chesterfield Capital Limited is a company of which Geoffrey Dart, a Director of the Company, is a director and indirect shareholder

[ivor hunch] 28/9/2017 16:59

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 16:35

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 16:03

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 14:58

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

[market master] 28/9/2017 14:49

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 14:35

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

[market master] 28/9/2017 14:21

Broker note stating target price 2.3p

[ivor hunch] 28/9/2017 12:09

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 09:44

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 07:31

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 15:46

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 08:41

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 07:53

#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 22:30

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.