how about this week?...... Today??
how about this week?...... Today??
I don't think the placement will be anything like 30 million. There are only 67.5 million to be taken up other than the major shareholders so with say only a 66% take up of those, leaves 23 million to place.
To have to place 30 million would mean almost $4 million written off by ill informed or unaware investors.
i think they may get a 10% no reply from smaller investors, meaning a placement of only about 7 million.
Will be surprised if it's much more and if it is this small, that should help underpin the share price and make good press.
Paul Brynes would seem to have his head screwed on.
Disc. I am adding to my holding at around these levels. They may fluctuate a little lower, but don't think by much.
IMHO. DYOR.
I
Also, note these comments on M&A from the full year results, which was also mentioned in the capital restructure announcement. Unless it is just wishful thinking on their part it would seem to me to indicate they probably have M and/or A already lined up, if not in the can.
....
Overall, the Dorchester group is now very well positioned. We remain quite
comfortable with our earlier guidance of a profit after tax of $6 million
from existing operations for the current financial year, with this increasing
to $10 million over the subsequent two years.
We are also confident that M&A opportunities will add to these profit
forecasts.
Last day today to sell Options DPCOA.
EXERCISE: DPC: Dorchester Pacific - 134 million options excercise
5 June 2013
Company Announcement
134 MILLION DORCHESTER OPTIONS EXERCISED
Dorchester Pacific Limited (DPC) today announced that approximately 134
million options of the 150 million options on issue have been exercised and
will convert into ordinary shares. The shares will be issued on the 17th
June 2013.
CEO and Executive Director Paul Byrnes said the number exercised was higher
than the 120 million to 125 million expected.
"This is a surprisingly good outcome. We are now working with major
shareholders to see if some of their holdings can be made available as a
small secondary pool to go towards meeting placement demand. As previously
advised the total of new shares issued through the exercise of options and
the share placement will be limited to 150 million shares."
ENDS
A good outcome for Dorchester ......
10.6% shortfall in fact. Great result.
"This is a surprisingly good outcome. We are now working with major
shareholders to see if some of their holdings can be made available as a
small secondary pool to go towards meeting placement demand.....
Placement demand? let them buy on the market!
Here we go. THe sellers are starting to come out of the woodwork. With new shareholders (option converters) being allocated their shares shortly this stock (could) come under some pressure. Also those "insto" investors that got their shares at 25 cents may be inclined to sell? Or am I getting the vibe all wrong? Remember most of the profit this year will come from the gain made on the purchase of DPC 010's at a discount to book value.
This stock is now available at 26 cents but I do believe it may fall a little further as the 100 million plus option converters (who paid 12.5 cents to get a share) start finding their FIN's and CSN's and get their brokers to sell at these levels for a nice (perceived) profit.
Contrary thoughts welcome as I am looking at buying some of this stock just not sure what is a fair entry level.
Help me out here please.
This company has 358,740,632 shares on issue as per NZX
They say $6mil profit for year ending 31 Mar 14. And 40% of that going to dividends.
So at $0.26 per share....this equals a return of 2.6%. Not overly attractive.
Does this seem correct ?
I am also somewhat confused by the number of shares.
NZX states number above.
But a Dorchester document (7 June 2013) refers to "208 million shares currently on issue".
https://www.nzx.com/companies/DPC/announcements/237177
This number makes a big difference...which is correct ? Or perhaps both ?
Have they simply created these additional shares ? If yes......then is there a risk that they continue to do so ? Thus diluting the dividend ?
Can someone educate me please.
Cheers
RTM.
Yes your 2.6% NET figure is correct.
NZX is usually correct on shares. Between now and 7 jun 2013 lots of options were converted and a few other shares have been issued (see this for instance)
Best Wishes
Paper Tiger
Maybe for you PT, many thanks, making progress.
Bear in mind they placed shares with instos and others at 25c. I put my hand up for some and was scaled back as no doubt were the instos, due to the surprising take up of the options.
I would suggest that around these levels would be good buying, and at 25c or less I will be looking at buying some more, although I have quite a few already.
To me this is a growth stock, at this point any dividend is a bonus.
There will soon be 468 million shares on issue... so do be aware of this. A simple conversion of convertible notes anyone?
Blackcap The convertable notes were compulsorily redeemed in September last year.