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Wow! First time I've looked at this thread for months. Sold out completely back in March & while I didn't time it right $2.13 is a lot better than the $1.15 mentioned above. Had held since 2002 for an annualised return of around 23%
Curious as to whether there is trouble at DPC or if it is all the other trouble in the sector affecting sentiment?
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Any supports below $1? Nathan's Finance hit this one pretty hard this morning. It would be ok as a value stock when the sector finally recovers.
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has hit good quality DFH (Dominion Finance) as well... 5.6% down :(
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Question: Is DPC related to Direct Broking? Who do Direct Broking have a relationship with?
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I think I found the answer! It was the Dorchester Call Account.
This doesn't look to reassuring though! Are they safe?
"Units are subject to investment risk, including possible delays in repayment and loss of income and principal invested."
http://www.directbroking.co.nz/direc...tatic/cma.aspx
INVESTMENT AND ADMINISTRATION
Dorchester Funds Management Limited is the issuer and manager of the Direct Broking Call Account. Direct Broking Limited (a wholly owned subsidiary of ANZ National Bank Limited) has been delegated day-to-day management responsibility in respect of the Direct Broking Call Account. Units in the Direct Broking Call Account do not represent deposits or other liabilities of ANZ National Bank Limited or Direct Broking Limited. Units are subject to investment risk, including possible delays in repayment and loss of income and principal invested. No member of the ANZ National Bank Limited group (which includes Direct Broking Limited), New Zealand Permanent Trustees Limited or any other person guarantees (either partially or fully) Dorchester Funds Management Limited or the capital value or performance of any product issued by them.
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Wow, looks more like a mineshaft - haven't seen one this steep before!:eek:
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$1 here we come - good value? You would need to be an insider to know that. Meanwhile TA suggests $1 coming soon.
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DPC could be a solid contrarian play.
Trading at close to half book value, with quite a liquid balance sheet (see notes 7 and 9 to the annual report).
I don't see too much risk of the company going bankrupt even if they can't roll over their debenture stock.
Worst case could see a few years of losses and some restructuring costs if their loan book is constrained by a lack of investors for finance co debentures.
Profitability in the medium term is unlikely to be good with rising interest rates suppressing demand for consumer and property lending, and increasing the costs of servicing the debt required for such lending.
However, purely on a book value basis, the company looks interesting.
I could be a buyer if the sp keeps heading South.
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Around half their loan book is in motor vehicles, a segment that has been hit pretty hard over the last 24 months.
They also have $139m of loans due to be repaid before end of Sep.
If there has been little impairment of the due assets they should be OK.
With the current markets view on finance cos it may be prudent to wait till the downslide is over or at least until you get some confidence in quality of the MV assets. If they have bad news in September its likely the SP will tank further.