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SDIC Sdic Power.

18.00
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Name Symbol Market Type
Sdic Power. LSE:SDIC London Depository Receipt
  Price Change % Change Price Bid Price Offer Price High Price Low Price Open Price Traded Last Trade
  0.00 0.00% 18.00 - 0 00:00:00

Sdic Power Discussion Threads

Showing 1326 to 1348 of 1575 messages
Chat Pages: 63  62  61  60  59  58  57  56  55  54  53  52  Older
DateSubjectAuthorDiscuss
23/7/2010
11:42
It looks like the surveys have started to catch up with my expectations of German economic outperformance.

"German business confidence jumped in July by the largest amount for 20 years, a survey has indicated.

The Ifo Business Climate Index climbed to 106.2 in July, up from 101.8 in June, a much bigger rise than analysts had expected.

The survey also showed improved expectations for the coming six months.

"This increase is the largest since German reunification. The German economy is in a party mood," said Hans-Werner Sinn, the Ifo's president.

...

Ralph Solvern at Commerzbank said: "These numbers are just insane. The economy is really growing strongly. We'll see a strong growth rate in the third quarter as well - the Ifo Business Climate Index is often spot on.""

scburbs
23/7/2010
09:58
nickduck is correct, SDIC forgive the pun is now a dead duck.

Over leveraging against a flawed business model and over optimistic assumptions has finally killed this company. All that remains is for the banks to decide upon the best course to recover as higher percentage of their o/s debt as possible.

I can't see a fund raising flying now.


As I see it, anyone buying SDIC is taking a punt on a debt write off or a devaluation which would only occur via Germany exiting the Euro.

lagosboy
23/7/2010
07:58
Nickcduk,

I wouldn't describe DDE has generating plenty of cash! Against €800m of property it generated €8m of cashflow (excluding capital items). This means every year it can reduce its LTV by 1%! It is going to be a long wait (until the debt is able to be refinanced) if they only have the cashflow to go on! I agree with your point that the banks may be more aggressive with SDIC because they can see the equity buffer and the post internalised cashflow position of SDIC remains the great unknown.

scburbs
23/7/2010
07:31
scburbs

The difference between DDE and SDIC is that DDE still generates plenty of cash. If banks decided to seize their assets they would take a loss on the deal because the property values barely cover the LTV. If they let them carry on the LTV will fall as a result of free cashflow. With SDIC there is no guarantee of them generating cash and there is still probably enough equity in there for them to be able to sell the assets and still receive back what they are owed. I don't think the market is being particularly inefficient in this scenario.

nickcduk
23/7/2010
07:11
Promising news on board change (Investor pressure?). I wonder if they had to wake the Chairman up before showing him the way to the exit?

As to the internalisation deal they continue to neglect to indicate the source the properties being transferred to SYG and the associated debt being transferred.

"Director Change

The board of directors of Company ("the Board") announces that the chairman, Raymond Apsey, will be retiring from the Board with immediate effect. The Board would like to thank Mr Apsey for his valuable contribution and guidance since the Company's launch and wish him all the best in his retirement.

Following Mr Apsey's departure, and in light of the eventual internalisation, the Board is currently reviewing the overall structure and composition of the Board, including the appointment of a new chairman and executive members of the Board. The Company will provide further information in this respect as appropriate."

scburbs
23/7/2010
07:05
Develica Deutschland results out. This company trades at a massive premium to NAV, has Derek Butler (SDIC director) as its Chairman and has an LTV of over 100% and negative NAV.

This company desperately needs equity, but its share price relative to SDIC is very very strong. This is because people know that it can't raise equity. If SDIC dropped its equity raising rhetoric the share price would rise in my view. This is because whenever an overindebted company flags a potential equity raising the share price crashes. The fact that the share price crashes then massively increases the dilution that would occur if they then raise equity using that lower price as a starting reference. The market is very inefficient from this perspective and that is why it would be ludicrous to raise equity at this level if there are any other options.

From Develica results

"Banking Facilities and Group Cash Position

As I previously outlined in the year's Interim Report, the Group's property valuation at that time indicated that the loan to value ("LTV") ratio would, in certain cases, exceed LTV covenants and, based on the valuation at 31 March 2010, that remains the same. However, at the year end date, some of these covenants as set out in the facility agreements remained untested by the debt providers.

Through its subsidiary companies, the Company had eleven ring‑fenced loan facilities totalling €830.4m as at 31 March 2010 (net of unamortised loan arrangement fees) and through capital repayments, we reduced our debt position by €8.0m during the year. Each of these facilities has LTV and interest cover or debt servicing covenants which have to be met.

As reported last year, the Group has been notified of two LTV breaches relating to the Group's loan facilities now standing at €113.7m. In each case, the lender has requested a valuation under the terms of the facility agreements and the Group continues to have positive discussions with the lenders to seek to remedy these breaches. No further notifications of LTV breaches have been served on the Group by its other lenders although we continue in discussion with all our lenders with regards to the loan facilities.

The two facilities that have been notified of their respective LTV breaches have triggered cash traps. Excluding the five loan facilities with our largest lender Citibank International PLC that have currently amended LTV covenants, the remaining four facilities would trigger LTV breaches if the lenders were to request an external valuation. The gross LTV (gross debt against property assets) was 103.7% (2009: 98.4%).

Loan interest and amortisation continues to be well serviced through rental income with only one exception. As I reported at the interim date, one of the smaller loan facilities has an Interest Cover Ratio ("ICR") covenant which is not being met. The Company continues in discussions with the relevant bank to remedy the breach. All other ICR covenants are currently being met.

I mentioned at the interim date that we were hopeful to be able to announce further restructuring of some of our loan facilities with the intention of stabilising our Group's debt. We are still in negotiations with our lenders concerning the restructuring and will announce the outcome as soon as we can.

Cash and cash equivalents at 31 March 2010 amounted to €23.9m (2009: €30.4m) with €17m under the control of the lenders (2009: €18.9m). None of the €6.7m cash held at Parent level was held in controlled accounts."

scburbs
23/7/2010
06:56
Lagosboy,

Sadly the Germans need the Euro. The downside of being a nation of savers is that you are dependent on the solvency of your borrowers! If they turn off the life support it could hurt them as much as it would hurt the PIGS. Let's see how much equity the German banks are being told to raise today (as the results of the very easy European stress tests are announced). Even with the easy test the German banks are likely to have amongst the highest equity requirements (with the UK bank requirements likely to be nil, having already taken the required steps).

scburbs
22/7/2010
12:30
scburbs

If the outlook for the German economy is as rosy as you believe ( and I have no idea ) at what point do the Germans say screw the Euro and turn off the life support to the likes of Greece and the PIGS?

lagosboy
22/7/2010
08:31
Well done schrubs.....Portuguese mortgages....oh dear. It can also take up to 5 years to re-possess a property in Portugal due to the draconian laws dating back to days of communism.

That would take care of the NAV.

lagosboy
21/7/2010
22:08
Envirovision, Can you provide any colour on the likely value of the lower rated tranches.

I dont think the unrated or junk is published so would guess your looking at around 12% yeild on debt valued at around 60c in the euro. However I am guessing. As you may have gathered, its all been maturing above book thus far.

envirovision
21/7/2010
21:49
Back on point the Germans are in a rush to get their GDP forecasts upgraded. Hardly surprising with the weak Euro. Interesting that he was confident enough to extend that to next year as well.

"BERLIN (MNI) - German Economics Minister Rainer Bruederle said in a newspaper interview published Sunday that German GDP will grow at a much stronger clip this year than the +1.4% previously forecast by the government.
"I'm sure that it will be markedly more" than +1.4%, Bruederle told German weekly BZ am Sonntag. The recovery will also continue next year, the Minister predicted.
The stronger growth will have a positive impact on the labor market, Bruederle said. "I expect that we will get under 3 million unemployed in the course of the year," he asserted."

scburbs
21/7/2010
21:46
QWIL certainly looks interesting, but it does have 36% of its assets in Portugese mortgages! I am not a holder, but it is on my radar given it is ungeared, but it is quite difficult to assess with 30% of the assets being BBB or below and 28% being just A.

Envirovision, Can you provide any colour on the likely value of the lower rated tranches.

It has also indicated that it is intending on moving up the risk spectrum, which given it is not exactly at the bottom is questionable, although there are no doubt some attractive returns available in the mezz space. The lack of gearing clearly gives it more space to take a few risks.

scburbs
21/7/2010
21:16
No leverage, 40% discount to NAV, 13.5 yield.....puts SDIC into context, or is it too good to be true ?
lagosboy
20/7/2010
10:15
Interesting, I think I will give that a miss, treveria seems stuck in a bear trend and is getting taken to the slaughter house.

QWIL nickduck IMO, no leverage at all, discount to nav 40% yeild 13%, a no brainer. Oh and keep you eyes peeled for Gagfah on special offer over the next few weeks imo.

envirovision
15/7/2010
15:52
MAX is on a discount of 18%. Its invested in less fashionable properties so avoids the bubble that exists in prime. What really attracts me is the huge income generation that MAX is capable of. I don't see why it can't do 10-15p+ in earnings per year. On those metrics it is cheaper than pretty much any UK property company on the market.
nickcduk
15/7/2010
15:05
Treveria do seem to offer value at first glance I will take a closer look. I agree max will make money but with many funds offering big nav discounts, its not in the least bit attractive right now imo.
envirovision
15/7/2010
14:26
My punt from around 4.5c didn't really cover my losses from higher up unfortunately. I may re-enter the fray but only once we get some proper disclosure on what the score is here.

Sorry for not replying to your question on one of the other boards earlier. Not really in the buying mood at present but have picked up a few TRV and on the board to pick up some MAX as well. TRV trading below cash and will hopefully continue generating profits. Recovery in Germany will do them no harm either. MAX is a bit of an oddity. Share price totally disregards the progress they have made so far. Will potentially generate a chunky amount of earnings. Promoters have a 7 year life span for the company and are there to make both themselves and shareholders money. Mike Brown is also very highly rated.

nickcduk
15/7/2010
13:32
ok, i knew you took a punt at 5 cents back in june and wondered if you had or where going long term.

BTW are you positive on any property companies at all anywhere or is it a secret?

envirovision
15/7/2010
13:26
Ive pretty much exited my trades over the last few weeks when it spiked higher. Just don't have any faith in Mellon doing anything right by shareholders. The clincher for me was when I spoke to Fairfax and questioned the need for Mellon pumping in a couple of million. I asked why they needed that when they had 20m or so of cash at parent company level at last reporting date. I was told they wouldn't be bothering raising money from Mellon if they still had that much cash.
nickcduk
15/7/2010
13:11
nickcduk do you have an exit price in mind?
envirovision
14/7/2010
07:59
no perhaps jm wanted to lend more than they needed to borrow!!!!
ie we may well have a truely independant board

bisiboy
14/7/2010
06:14
Cash required has just fallen by 1.4m euros. Hopefully this is sending out a positive signal. Not a word I thought I would ever use about SDIC ever again.
gary1966
05/7/2010
18:32
Evening scburbs

Nice summary....exposure to the PIGS might be an issue for the banks.

Off to Valladolid for the semi....Viva Espanha ( Germany looks pretty tough thoug !!!! )

lagosboy
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