Dx (group) Share Discussion Threads

[dlku] 15/11/2015 14:07

city link did collapse last christmas

[cashmachine2] 15/11/2015 13:40

The company has signed a number of major new customer accounts in the period to date, including accounts which have yet to start trading, and management remains focused on opportunities for long term relationships providing commercially acceptable returns.Petar Cvetkovic, Chief Executive Officer of DX, said:"This announcement is very disappointing. However we continue to position the business for long term success, creating a more efficient operating structure to support our services under our OneDX programme. The fundamentals of the business remain robust and while trading conditions are challenging, we are building strong foundations for future growth."---------------------Signed a number of MAJOR customers which have yet to start trading! I'm more interested in the holding RNS's and we shall see which IIs are reducing/ bailing and which ones believe in the strong foundations and future growth and will see this 72% drop as an opportunity.

[deanroberthunt] 15/11/2015 11:18

a troll is a bear of a different colour....as someone once sang "it ain't necessarily so"

[garydav2] 15/11/2015 11:00

So trolls and bulls on here. Yes the company has massively disappointed but everything has a price.
Any sensible views guys on next weeks price level??

[deanroberthunt] 15/11/2015 10:45

Strange that in the overwhelming majority of cases on AIM, the trolls with the benefit of hindsight call it right......maybe there's a lesson there somewhere...

and it's not neceassarily because they are top notch investors nor have a crytsal ball...but just the fact that the vast majority on companies on AIM will never make it in a public listed environment, for differening reasons.

[masurenguy] 15/11/2015 10:35

Sadly, it looks like the trolls have invaded and taken over this thread !

Some interesting insight on this sector in the FT following the collapse of City Link last Christmas. Interesting to also note that the current DX CEO Petar Cvetkovic had previously been the CEO of City Link although he moved to DX in 2010 long before their demise. DX of course subsequently cherry picked some of CL assets and staff after the company went into administration last January.



The courier business is highly competitive and apparently relies on self-employed owner drivers to deliver their packages and according to the FT over 70% of them are migrants who find it difficult to recoup the investment that they have to make on vehicles and equipment. Their is also overcapacity in this sector and therefore the real issue going forward is whether DX have the key service differentials and management skills to survive the inevitable consolidation which is clearly in train at the moment. Management credibility took a massive hit this week and subsequently the jury is remains out on this !

[deanroberthunt] 14/11/2015 14:32

to be fair in comparison to HSS this is reasonably robust, at present, notwithstanding dIku's comments post 312......HSS's balance sheet is weak as pish, they make no profit and are full to the brim with debt, and has a value double that of DX.

that does not mean that DX is a buy btw.

[sharetips6] 14/11/2015 12:43

you are desperate keya this one is doomed

[dlku] 14/11/2015 12:01

They must have a massive pile of contracts losing money

[keya5000] 14/11/2015 11:58

Look at lonmin, wtf would you do that for? Apart from the fact its listed in London that's the similarities over.

Balance sheet robust, ample ebitda no covenant breaches here on the relative well serviced debt.

No issue to the bankers so don't be silly.

[dlku] 14/11/2015 11:49

is there risk of covenant breach on the £40m debt if profits shrink?

Look at lonmin, 30p when CR was saying it was a lovely bowl, etc and a month later placing at 1p

[deanroberthunt] 14/11/2015 10:38

cash

jeez dude, deal with facts not hope

53m shares traded in one day vs around 300k normally.....that's not just PIs.

and is why the shares tanked 73%

[deanroberthunt] 14/11/2015 10:37

if they've been dumped then they can't ever be trusted, so it's then an AVOID, unless you just want to trade it on technicals

[cashmachine2] 14/11/2015 10:36

Dean.Rather than making "statements" regarding the IIs why not wait to read any holding RNS. One could argue that some of the significant IIs may see this as an opportunity to increase which would be somewhat opposite to your view.When the dust settles the bounce will come - I look forward to reposting some of your drivel.deanroberthunt - 14 Nov 2015 - 10:25 - 305 of 305 - 0all that would be dwarfed by the IIs offloading, that is the problem short term.....I think Bozzy was near the mark, probably settle around 18-21p ? ....

[elcapital] 14/11/2015 10:35

I will hold judgement re the shares, but I did wonder why one would make such a transfer when they would have known at that stage how bad things were.

[deanroberthunt] 14/11/2015 10:25

all that would be dwarfed by the IIs offloading, that is the problem short term.....

I think Bozzy was near the mark, probably settle around 18-21p ? ....

[keya5000] 14/11/2015 10:21

Even if the bod invest the div they are due on their holdings it would create sizeable purchase.

Likely we will see some director buying on Monday.

[deanroberthunt] 14/11/2015 10:21

and you can always roll it in glitter.

[deanroberthunt] 14/11/2015 10:20

I may buy given a confirmed set of criteria...

[keya5000] 14/11/2015 10:19

Dean you are talking yourself into buying now.

£8m being dished out on Monday what percentage of that will be used to average down?

[deanroberthunt] 14/11/2015 10:14

If the BOD et al buy big with their own money, then I may re-think....but they need to be buying large amounts...

[deanroberthunt] 14/11/2015 10:10

trying to be restorative....based on the current worst case forecast for 2016 (Arden), I reckon 23-25p is about right.....once the share price normalises...that puts it on a per of around 6x with a 10% yield...

very short term, if the IIs keep dumping there's no bottom....

The problem here, again, like so many others, is that clearly it's a company IPO'd and run for the benefit of the BOD and friends and not shareholders.....if Lucy has indeed sold the transferred shares prior to the t/u, then my scepticism would be confirmed....

I'm my view, the dividend should be completely shelved and the new hub put on hold to preserve cash....to continue paying a dividend and increasing net debt to £37m whilst earnings and profit falls off a cliff, and in sight of a slow down / recession / next bear market, would just be further evidence of the company putting two fingers up to shareholders.

[keya5000] 14/11/2015 10:06

But asset value rises in the facility they are using the debt for gets competed

You can't concentrate on one negative without looking at what the flip side of the action is.

[dlku] 14/11/2015 10:02

Net debt increases to £26.5m and £40.0m in FY16 and FY17

Profits going down

Noxious.