Sharesmagazine
 Home   Log In   Register   Our Services   My Account   Contact   Help 
 Stockwatch   Level 2   Portfolio   Charts   Share Price   Awards   Market Scan   Videos   Broker Notes   Director Deals   Traders' Room 
 Funds   Trades   Terminal   Alerts   Heatmaps   News   Indices   Forward Diary   Forex Prices   Shares Magazine   Investors' Room 
 CFDs   Shares   SIPPs   ISAs   Forex   ETFs   Comparison Tables   Spread Betting 
You are NOT currently logged in
 
Register now or login to post to this thread.

Dowgate Capital - Capitalising on the booming AIM market (DGT)     

overgrowth - 09 Feb 2005 20:52

Dowgate Capital (DGT) are sitting in the middle of a goldmine!

This company through their sole trading arm City Financial Associates are looking to take full advantage of the "booming" AIM market this year. Dowgate provide NOMAD (NOMinated ADvisor) services to AIM companies and also have full Corporate Broker status which means that they can fund placements on behalf of the companies they represent.

On first sight, the fact that Dowgate exist in the often veiled financial services sector makes you think twice about investing in company such as this because it would be impossible to understand what they were doing - however, think again!

DGT bring new companies to the AIM (Alternative Investment Market). For each new company "floated" on AIM, they take arrangement fees when acting as NOMAD. After the company is launched then for a nice steady earner DGT get another healthy chunk of cash every year for looking after them (note that all AIM companies must have a nominated adviser - thereby securing a ready source of recurring income).

Because DGT also act as a Corporate broker they can get a very healthy percentage for arranging placement of shares with insititutions before a new company floats. In addition, because placements come outside the sphere of yearly NOMAD work, they can also gain healthy percentages of placements which companies may need to make throughout the year when they need a quick injection of cash to speed growth.

Current NOMADships: 28 companies represented (gives recurring income of approx 480,000 per year)

Current on-going Brokerage agreements: 19 companies (income depends on placements)

For flotations, depending on the size of a company, fees charged will be anything from 50,000 to 100,000+ For placements (the real earner), DGT get anything from 3% to around 12% of the TOTAL AMOUNT RAISED - For example a new company raising 3M though a placement will earn DGT anything from 90,000 to 360,000 ! These figures are indicative as actual deals all differ due to circumstances and DGT sometimes take payment in shares - they still have a tasty chunk of Setstone shares and when this Russian exploration company comes back to AIM, predictions are that the share price will rocket. Note that the amount that this little company can earn in fees is huge and every new deal that comes through we know will contribute another healthy chunk into the bottom line. The good news with every new floatation means that it's another chunk of recurring revenue which could go on for years, with DGT having to do very little. New clients gained in 2005 are:

Mediazest (NOMAD & broker) Elite Strategies (NOMAD) Process Handling (NOMAD) Poland Investment Fund (NOMAD) Nanotech Energy (NOMAD & broker) Archimedia Ventures (NOMAD & broker) Red Leopard Holdings (NOMAD) Alba Mineral Resources (NOMAD & broker) Intandem Films (NOMAD & broker) Motive Television (NOMAD) IncaGold (NOMAD) Sportswinbet (NOMAD & Broker) Infoscreen Networks (NOMAD & Broker) Mark Kingsley (NOMAD & Broker) Croatia Ventures (NOMAD & Broker) Pantheon Leisure (NOMAD) Firenze Ventures (Ofex Advisor) FlightStore Group (NOMAD & Broker) Euro Capital Projects (NOMAD) Pearl Street Holdings (NOMAD) Worldwide Natural Resources (Ofex Advisor) Dovedale Ventures (Ofex Advisor) Other 2005 work completed:Neptune-Calculus VCT offer for subs of up to 12 million Advisory work for TGM on London Bus disposal for 20.4M Advisory work for Creightons on property disposal Advisory work for Hampton Trust on company restructuring Advisory work for Interbulk Investments on acquisition of Inbulk Advisory work for Fundamental-e Investments on two disposals Advisory work for Designer Vision re: Design Rights against Centurion Electronics

Click Here for fundamentals and profit projections.
Chart.aspx?Provider=Intra&Code=DGT&Size=Chart.aspx?Provider=EODIntra&Code=DGT&Si

ptholden - 28 Jul 2005 17:56 - 1238 of 2787

Eric

GHW held 42M shares following Barclays departure. They released a RNS recently stating that they no longer hold a notifiable interest. What they didn't say was if they held any interest at all. Personally I took that to read that they had disposed of 23M shares thus far and still held 19M. The selling over the last few weeks seems too coincidental to be just PIs getting bored or fed up and seems to have the hallmark of a big seller. The easy assumption is that it is GHW. Why would they sell approx half and not the other? Particularly as they are now getting a much better price than the 0.45p they got for the first batch. The good news is that PIs are aware of the fundamentals and potential and have been hoovering up any loose stock. If it is GHW then I think they must nearly be finished. I would even hazard a guess that they have finished today.

Why?

Treeshake today disguised by the selling activity. In actual fact, buys outnumbered sells, even assuming that the 500k unknown was a sell. I was expecting late reported trades in the region of 1m+. So far nothing so why drop the bid/offer? Might be something tomorrow morning, we shall see.

Although the 250k sell at 0.60p may be a PI who got it all wrong, I think it unlikely that any PI would accept an offer outside the yellow strip, especially as you can nearly always deal inisde the strip with DGT unless you are selling a substantial amount. No, I think todays and yesterdays below par sells are part of that bigger sell order and 0.60p was the best price the MMs were willing to pay for the last dregs of that order.

If I am right, the MMs now have hopefully played their last card and the rest is down to market forces. I fully expect this make us all very happy investors in the coming weeks.

Could be a complete load of ******* though, so don't believe everything you read! LoL :-))))))

pth

markusantonius - 28 Jul 2005 20:16 - 1239 of 2787

Maybe we should all ask DGT to declare GHW's interests (and control)........?

ptholden - 28 Jul 2005 20:19 - 1240 of 2787

Hmm, crypic post Mark, perhaps you would like to explain?

arawli - 28 Jul 2005 20:40 - 1241 of 2787

Good Evening All

I see the MMs are still trying to get people to sell out. I can't beleive they won't just let it run. When GWH were selling before we used to get T Trades posted every night for amounts that we thought were buys. I don't think we have been getting regular T Trades recently. Then again we have not been seeing any balancing sells being posted.

A senario noone has looked at is that the MMs might be going short on the stock because they have not realised the figures that DGT are about to publish and could get caught short big time when the Interims are published if the Buying comes in big time! I have seen this senario once before when I owned SEG shares it happened about 12 months ago and the price tripled in about a month.

I would buy some more myself I have funds available but I am a bit worried as I already own over 1% of the company and I will struggle to sell my stake in a few years if I buy many more. I wouldn't hesitate to spreadbet on DGT but the company's Market Cap is just too small at present.

Then again I could change my mind tomorrow!

All the best

Andy

markusantonius - 28 Jul 2005 21:00 - 1242 of 2787

So, Mr. Arawli, you are under the 3% critical barrier. But prey tell - what can you state here about GHW? What do you know of their influence on DGT? What leverage do they hold? Was having a GHW bod on their Board part of the original deal? What can they do/cannot do without seeking GHW approval first? Etc.????????

Prey, tell us more.................???????

arawli - 28 Jul 2005 21:13 - 1243 of 2787

Mark

I don't know GWH's motives and IMO they only held DGT as an Investment. I think the other company who owned the shares before them and sold at a loss (Griffin) might have been trying to get a deal with DGT as we seemed to get alot of work from their companies in the early part of the year.

If GHW are the seller then I think they are just taking a profit which can be said for any seller at the current price. The wierd bit for me is that the sells are not being declared to the market like they were the last time GHW were selling.

Andy

EWRobson - 28 Jul 2005 21:23 - 1244 of 2787

Thanks, Peter; makes sense. I had missed the RNS whilst on holiday. The balance would be just about the shares sold in the interim. If so, the drag on the sp will have been removed. Makes the timing of my purchases semi-inspired! Still planning to add more so not too keen on the price roaring away just yet. Suspect we may have another week or so before the interims get too close.

Come on, markus, no more prevarication. Remember the faint heart lesson; you won't be able to sneak up on the ropes as you normally do with pth on the golf-course!

Eric

markusantonius - 28 Jul 2005 21:33 - 1245 of 2787

"Faint heart lesson...", Eric? I take offense, sir. The Shark is without fear, as you know! The only time PTH has ever beaten me on the golf course was the first time we played (that's 1/7) on his home soil. If we play another 100 times, it's unlikely he would win more than twice!!

ptholden - 28 Jul 2005 21:39 - 1246 of 2787

Andy

This is obviously all supposition, but... GHW sold their first tranche of 21M whilst the SP was fairly flat. As I recall most of those trades (we assume) wnet through at mid price and were protected. I don't think we had the same consistancy of market activity as we have at the moment. I would suggest that currently there is no need to protect these sells as they can slip through the day's trading with little comment. Now they have less than a notifiable interest there is no requirement for them or anyone else to declare their holding, or hopefully lack of holding now. I don't believe the MMs are going short on the stock. As GD has posted elsewhere, MMs don't generally like to hold stock, they may get caught out, so with respect, I can't go for that one.

Markus

I don't believe GHW hold any leverage over DGT, stock, influence or otherwise. I would be interested to see any such proof, as would I am sure the FSA!!

pth

andysmith - 28 Jul 2005 21:59 - 1247 of 2787

Tempted to top-up from here, bb seems enthusiastic that 1.2-1.5p guaranteed but why would there be a large seller now if they could get 50-100% more in a months time? or am I just being thick? Already have some at 0.59p so not at all negative on this, just trying to understand the logic of what is being suggested.

markusantonius - 28 Jul 2005 22:02 - 1248 of 2787

EXACTLY, Andy!!!! Also my main concerns, mate.

I pose the question again - directly to DGT - Does GHW have any "pre-conditions" over you? Was having a non-exec director on the Board part of the [or any other] deal? Is GHW "leaking" stock to match deals thus keeping the price down? Does DGT need GHW approval before sanctioning any further steps forward? What was their original deal with you? Is GHW holding you back in any way? What leverage do they hold over you, if any? If none, then please say so here?

ptholden - 28 Jul 2005 22:32 - 1249 of 2787

Andy

Why does any investor sell? Profit. The only people who have said that DGT is worth 1.5p are investors on Financial BBs. DGT certainly haven't said that they are worth 1.5p, in fact directly the opposite. During my email ping pong with TR he stated quite categorically that the current situation from the last set of accounts relates to a much lower SP. However, from the information that we have been able to glean from the posted documents on the CFA website, it seems certain that the company will turn over a nice profit for H1. The calculated profit by us investors relates to a SP of 1.25p-1.50p. Just because that's what we think that's what the company will be worth, it doesn't mean that is what will happen. If you were GHW would you be taking advice from this BB (or any other) or taking your profits? It's just like any other company. Take SEO for example; figures of 30p, 50p, 1 are been thrown around so why are people selling now. Taking profits. Not everyone's strategy is the same.

Markus

If you want DGT to answer that question, send TR an email, his address is on the website. You can't seriously think that he reads this thread. By the way, who is the GHW non-exec director.

pth

overgrowth - 28 Jul 2005 22:34 - 1250 of 2787

Tony Rawlinson has always said that he doesn't know what GHW's intentions were/are as they are simply a company that invested in what was at the time CFA Capital and are not connected with the business.

With 19m shares or less in the company, they're not going to have any clout from a major investor stance either.

markusantonius - 28 Jul 2005 22:55 - 1251 of 2787

Depends what the pre-deal conditions were, OG. Who knows? FYI Small cap companies these day are struggling to find backers. Buyers (Institutions or similar) do indeed have major "clout" and can basically "pick 'n choose" from the best of the crop. There are "underwriters" to consider, for instance, those who hold generous warrants. Everyone has their own agenda and we are all here to make a few quid! Let's be honest, that's what we do.

Suggestion: Anyone who doubts GHW's integrity - why not DYOR online and see what comes up? Might reveal a lot?

EWRobson - 28 Jul 2005 23:13 - 1252 of 2787

Feel that the GHW dialogue is something of a red herring. Don't recall any shareholding that is large enough to exert influence. From statments made by Rawlinson, DGT are in control of their own destiny. Obviously not one to count his chickens but they are certainly laying some golden eggs. Prefer eggs to herrings! Mind, dogs don't mind what they eat, do they sd, so long as they are eating something!

Eric

ptholden - 28 Jul 2005 23:29 - 1253 of 2787

The only relevance that GHW has to the current situation is that they purchased 41M shares of the 60M that Griffin Securities disposed of earlier this year. The shares were not owned by CFA, so where Markus gets this idea that there were pre-deal conditions is beyond me. The transfer / sale of those 41m shares had bugger all to do with CFA. What is material at the moment is whether GHW have now sold the remainder of their holding following their recent diposal. I think they have, for what it is worth.

pth

andysmith - 29 Jul 2005 07:17 - 1254 of 2787

Pete, I'm merely posting a question. I doubt for one minute these bb's influence large holders but they are what us PI's need, a discussion forum.
If I had several million DGT shares, I may bank some profit now just in case but I'd hold onto the rest to see what the results bring.
I did it with MMG, selling some at 185p (200% profit thanks) as I was away when an RNS was due and then the rest at 270p when I thought it had risen too far.

So with DGT, are some PI's locking in profits (and nothing wrong with that), are the MM's getting stock ready for the interims, or do we have a large seller and if so why?

Questions in my head Pete as I have finger poised on the BUY button.

ptholden - 29 Jul 2005 08:54 - 1255 of 2787

Andy

The drip feeding of sells every time we see buys leads me to believe there is a large seller; my second guess is that seller is GHW. This would make sense following the RNS announcing their disposal a couple of weeks ago. They are selling because they are well in profit, I doubt very much that they pay attention to financial BBs or have taken the trouble to research how well DGT have done this year. They have seen the SP consistantly rise and have taken the opportunity to sell into that strength.

For what it is worth Andy, I sold a dog a few days ago and bought a few more at 0.74p, My average is below the price at which you purchased your first tranche. I sold the dog and invested more in DGT because I believe I will see a greater return, even at a purchase price of 0.74p.

Best of luck if you decide to buy more, let's hope that 'ooverhang' has gone and we can get on with it.

pth

snip25 - 29 Jul 2005 12:58 - 1256 of 2787

Looks like the overhang has gone,hold onto your hats gents she's gonna blow!!!

stevieweebie - 29 Jul 2005 19:24 - 1257 of 2787

http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=517502

Intresting for all holders.
This will be us soon.
Have a good weekend all
Stevie
Register now or login to post to this thread.