Jump to content


Photo
- - - - -

Distribution and Warehousing Network Ltd. – DAW


  • Please log in to reply
73 replies to this topic

#61 andi222

andi222

    Member

  • Members
  • PipPip
  • 114 posts

Posted 21 November 2018 - 02:59 PM

Interim results are due this week and hopefully they will bring some light to the cautionary announcement. Or does anyone know what the cautionary entails?


  • 0

#62 andi222

andi222

    Member

  • Members
  • PipPip
  • 114 posts

Posted 15 November 2018 - 03:11 PM

Could this kind of cautionary refer to a rights issue?

 

No, they already had a rights issue a year ago for R1 per share. They are nearly debt free so I think its either a take over offer or an announcement that a business unit will be sold for a good price.


  • 0

#63 Shi

Shi

    Little Master

  • Senior Member
  • PipPipPipPip
  • 648 posts
  • LocationCape Town

Posted 15 November 2018 - 11:52 AM

Yeah amazing haha. I think they either selling a loss making division or Bidvest might have made an offer to buy whole company. Either case I still see a big jump for this share 

 

Could this kind of cautionary refer to a rights issue?


  • 0
“One day Alice came to a fork in the road and saw a Cheshire cat in a tree. Which road do I take? she asked. Where do you want to go? was his response. I don't know, Alice answered. Then, said the cat, it doesn't matter.” - Lewis Carroll

#64 andi222

andi222

    Member

  • Members
  • PipPip
  • 114 posts

Posted 14 November 2018 - 07:53 PM

Yeah amazing haha. I think they either selling a loss making division or Bidvest might have made an offer to buy whole company. Either case I still see a big jump for this share 


  • 0

#65 Lionelza1

Lionelza1

    Master

  • Members
  • PipPipPipPipPip
  • 847 posts

Posted 14 November 2018 - 03:45 PM

What happens to the share if they are bought over
  • 0

#66 Lionelza1

Lionelza1

    Master

  • Members
  • PipPipPipPipPip
  • 847 posts

Posted 14 November 2018 - 01:38 PM

Yoh andi that was a good one eh
  • 0

#67 andi222

andi222

    Member

  • Members
  • PipPip
  • 114 posts

Posted 14 November 2018 - 10:36 AM

Wow 100% this morning on the cautionary announcement. Wonder what it is. Does anyone have more information?


  • 0

#68 andi222

andi222

    Member

  • Members
  • PipPip
  • 114 posts

Posted 06 November 2018 - 11:39 AM

So at the current price of 5 cents all news will be positive. The only bad news that could push this share down even further is liquidation. They will report a loss in their interim financials, however they are on track with their cost-cutting plans to become profitable in 2019 or 2020. The most important thing is they are close to debt free and this came at a cost to shareholders (rights issue). That's why we see the price at 5 cents and not at 50 cents. People lost lots of money here if you look at where this share was sitting 1-5 years ago.


  • 1

#69 realkingkam

realkingkam

    Member

  • Members
  • PipPip
  • 96 posts

Posted 06 November 2018 - 08:58 AM

Nice, court case solved. Positive news flowing in now. Looking forward to interim financials.

Do you think it will be positive?

I reckon until the construction industry starts churning nothing is going to happen
  • 0

#70 andi222

andi222

    Member

  • Members
  • PipPip
  • 114 posts

Posted 05 November 2018 - 05:07 PM

Nice, court case solved. Positive news flowing in now. Looking forward to interim financials. 


  • 0

#71 andi222

andi222

    Member

  • Members
  • PipPip
  • 114 posts

Posted 16 October 2018 - 04:58 PM

Good article to read:

 

https://www.business...sh-hungry-dawn/


  • 0

#72 andi222

andi222

    Member

  • Members
  • PipPip
  • 114 posts

Posted 16 October 2018 - 03:06 PM

I think we have found a bottom here at 7 cents. Every time someone want to push the price down it gets bought up fast. 

 

Current price is trading at a 90% discount to the rights offer price. Very interesting where this one is going.


  • 0

#73 andi222

andi222

    Member

  • Members
  • PipPip
  • 114 posts

Posted 09 October 2018 - 11:53 AM

In my opinion they have a good turnaround plan. 

 

In the annual report they said: "We knew at the beginning of the financial year that we needed to restore liquidity to the group without delay. The R358 million cash received from the rights offer in April 2017 was used to reduce debt with the banks, but was not sufficient to fund the turnaround and debt levels remained high. In H1, the executive management team spent significant time on managing the liquidity position, including an in-depth cash flow review and engagement with our banks on covenant breaches and initiatives to retain our working capital facilities and sustain operational requirements. The sale of Grohe DAWN Watertech (GDW), Swan Plastics (as a result of the costly put option agreed to historically) and other smaller businesses generated R373,5 million. This allowed us to settle our debt and provide liquidity towards funding the turnaround. This progress is a highlight of the year as we were able to decrease net debt to equity from 93% at the start of the year to only 8% at year-end. In H2 the executive management of DAWN focused on further understanding the issues in each business at a detailed level. The deeper we delved, the more we understood the extent of the complexities we faced. It became evident that the turnaround required substantially more effort and that the return to profitability would be delayed."

 

Having a debt to equity ratio of 8% is really key in the current environment. I think if they continue to keep up the work they might be able to generate a profit in 2019 or 2020. Any other opinion on this share?


  • 0

#74 andi222

andi222

    Member

  • Members
  • PipPip
  • 114 posts

Posted 09 October 2018 - 11:10 AM

Any ideas on this company? At current price it looks like a good buy after the rights issue. 


  • 0





Sponsored by Sharenet and VPSNine Linux VPS Hosting