Looking at it another way - Poddy is selling out..........
Looking at it another way - Poddy is selling out..........
42 Below founders buy Dorchester stake :)
http://www.stuff.co.nz/business/indu...rchester-stake
Expect to see this one fully supported by various existing stakeholders. 5K on market increased the SP 58% to 10c
I can only assume the 5K spent was by interests who recently purchased millions of shares at 5.8c but then I have always been sceptical.
More news on a possible takeover.:)
http://www.stuff.co.nz/business/indu...d-for-takeover
I would hate to see DPC sold at these prices. I am not selling.
Any T/O should pay at least NTA for it.
Not a takeover, guys.
42 Below boys looking to use as investment vehicle.
Only problem is that Brent King of Viking-going-down-the-seas could be back!
Hole-LY H@ll .24c!!! it must fall this is cr@p imho!!
ROFL.... DPC is the only stock in green on my watchlist. :D
Dorchy is a finance company that has about $80 million worth of debentures on its book, that it receives a margin on. The management have agreed to a moratorium, whereby the debentures will all be paid back over the next two and a bit years. (if they can). Outside of that dorchy has bugger all businesses or revenue. Until monday this was a 6 cent share heading too zero, and unless the Baker boy can pull a miracle, or he has just gambled
400K.
My calcs tell me that at the rate of the moratorium repayment plan Dorchy will have negative shareholders equity by mid 2010. Dont you love this company, the GM of operations rewards himself with a $350,000 year income to run the company to zero, and the top 4 employees get paid more than 1 million bucks a year.
Maybe, the Baker Boys intend to sack these four and replace them with the tea lady. After all, she couldnt do any worse than they are.
Good luck to "The Bakery" the debenture and and shareholders are praying for you.
P.S I bet there will be no King in sight on this deal.
Don't forget Dorchester Life .... this quote in the recent Stuff.co.nz story.
http://www.stuff.co.nz/business/indu...d-for-takeover
The new shareholders also expect return on their investment through Dorchester's insurance arm Dorchester Life, which achieved a $1.2 million pre-tax operating profit for the year ended March 2009.
The dorchester Life arm includes the reverse annuity mortgage book, which is a very mature book, that is in run off. Like all other parts of Dorchies business its racing to zero, very quickly. The same could also be said about the car finance book. None of their businesses are growing, that is the problem. I assume this is what the Baker boys intend to arrest, otherwise the shareholder funds will be negative in no time.
Best of luck, this will test their skills.
Games being played
This one is being bid up using FA cash by the people who got in sub 10C. Classic sucker play - The "game playing team" will take turns bidding it up often using clients money (clients feel good - up 30% today - what a good advisor I have!) and selling out to each other for a profit as the SP rises. Alongside this the BUY side is loaded with BS orders for 100K+ volumes creating the impression of underlying support. The game players have access to order flow faster than BNZ, Direct, ASB clients so can withdraw the BS buy orders very quickly. On the depth at 09:20am this morning there are 2 bidders after 162K at 13c. and 110K at 11c. The match this morning would be 15c but "someone" is bidding 18c for 25K shares (cost $4,500) so that the stock will open up at 18C. And so on and so on. If you want to join the game remember that the gameplayers already have bought a large holding (large versus the 25K bid at 18C) at much lower prices so gain a lot more than they lose by pushing the SP up.
This can continue for a long time as it is nothing but manipulation of a low priced , tightly held stock,. The classic text book ramp is PLS at 80c+ and is not illegal as no-one can prove wrongdoing aka pls.
Then I suspect, in around 6 months or when the capital raising climate has returned to normal the business will come out with a new plan that will allow existing shareholders to purchase at 60c. This will seem cheap versus 80c and entice the suckers to buy from the Baker boys & the game playing team (who all know each other through previous capital raising schemes).
This will allow all money invested to be returned to the Baker boys & the game playing team who will also retain a large shareholding stake.
The business will have achieved ZIP and millions of market capitalisation is instantly created.
Have fun & get out when the chart shows demand drying up. Also check out the PLS chart!