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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

EWRobson - 05 Oct 2005 18:19 - 1600 of 2787

Hi folk: not posted for a while;enjoying holiday in Phuket in daughter's house, partly funded by profits from SEO - before that computer crashed and was tied up with golf club business. Still have my minimum holding for virility although have had to withdraw some funds. Coming back after a while away, I have the feeling that the general evaluation of this company is too short term. First having worked with a small consultantcy company, am very aware that you tend to have periods when everyone is working their socks off and there is little time for marketing and selling and tehn vice versa. DGT deserve to be evaluated over more than this year. So what, if H2 does not exceed H1, then work is likely to have been set up for next year. Second, it may well be that TR has taken the easy money from close acquaintances but the reputation and base is being developed for growing a significant business. We would never normally have the opportunity to invest in a company at this stage of its development nor would he have the visibility to its current trading. The rock bottom cap. reflects its early stage of development but we are in because we can see the scope for development. Its achievement depends on the performance of the management team. That perhaps brings us to the key issue. Does the team have the business development capability? Suspect teh answer is that we don't know. If not, there will probably be an exit route at above the present price. If the answer is yes, we could be on a multi-bagger. I am happy to stay around for a while to see, I suspect forming a judgement from on-going statments, the mix of business, signs of growth and, probably most improtant, my own gut-feel. Not always patient but suspect it is the key virtue in this case.

Eric

ptholden - 06 Oct 2005 12:58 - 1601 of 2787

As previously posted, something was afoot. Institutional interest can't be a bad thing.

Dowgate Capital Group Plc ('Dowgate' or the 'Company')

Holding in Company

Pursuant to section 198 of the Companies Act 1985 the Company has today
received notification that Restructuring Investors Limited has a beneficial
interest in 20,000,000 ordinary shares in Dowgate, representing approximately
3.2% of the Dowgate's issued share capital.

ptholden - 06 Oct 2005 13:17 - 1602 of 2787

just a very quick bit of research. RIL appear to be part of a much bigger fund called Active Value Capital, who target underperforming companies and essentially shake them up. Well, they're not going to do much shaking with a 3% stake, so I would expect further buying from the fund. All very preliminary 'digging' at the moment, so please check and DYOR.

pth

snakey - 06 Oct 2005 13:17 - 1603 of 2787

pth,
who are `Restructuring Investors` ?? I cannot find them on a search !

white westie - 06 Oct 2005 13:23 - 1604 of 2787

well spotted pth, where did it come from no RNS showing on the other site at present?

overgrowth - 06 Oct 2005 13:37 - 1605 of 2787

snakey,

You need more googling practice I think.

The company is based on the Virgin Islands (I wonder why lol!) and is owned by a discretionary trust.

The "corporate raiders" Julian Treger and Brian Myerson are behind the company.

It appears that these guys have the ability to move small companies out of the doldrums and greatly enhance shareholder value as a result of their advice.

This could well be a very interesting development for DGT as Treger and Myerson are involved in floating lots of new companies !

overgrowth - 06 Oct 2005 13:39 - 1606 of 2787

ww,

It came zooming through to my inbox as soon as the news was released from:

http://www.companyannouncements.net/cgi-bin/newsalert?conf=299544632

This service is free and well worth setting up to alert you to announcements.

white westie - 06 Oct 2005 13:47 - 1607 of 2787

overgrowth,

i have it set up but this has not come to me yet, i have had all the recent announcements about DGT companies since but not this one.

nevgroom - 06 Oct 2005 13:49 - 1608 of 2787

Treger and Myerson got very badly burned a couple of years back with the Chordiant/WPP saga. They were also for dismnatling Novar (bought by Honeywell at the beginning of the year) and were not too successful in that either. That said, I think they are only 2 blots on otherwise extremely successful investment calls.

ptholden - 06 Oct 2005 14:00 - 1609 of 2787

ww,

I use the same service as advised by OG, came through to me ok - obviously :-)

I believe this can only be good news for DGT and a potential for a steady increase in the SP. Early days yet, but few will have had the time or inclination to consider the ramifications. As I posted previously, I think they will continue to increase their stake in order to have a 'louder voice'. Particualrly when you consider that their modus operandi is to increase shareholder value by aggresively targeting a company management to greater achievements. They can hardly do that with a tiddly 3% stake.

pth

overgrowth - 06 Oct 2005 14:40 - 1610 of 2787

It could be that these guys believe that they've spotted a budding Daniel Stewart and know that they can increase the value of their investment by simply floating their own new interests through DGT.

This would work well, provided they put enough work through in DGT's direction then they will be able to get a good discount on floatation/brokers fees for their new companies (or new companies that they advise) and see their investment grow substantially as DGT starts to move into the bigger league on the back of all the business.

Interesting times ahead ?

snakey - 06 Oct 2005 16:17 - 1611 of 2787

pth, ta for that and very interesting on the face of it.

EWRobson - 07 Oct 2005 06:34 - 1612 of 2787

pth, og et al: does look like a very positive development. First, interesting that the stake is just over 3%; in other words they want it to be known whilst limiting their exposure to around 100K pounds. Second, seems likely, as per og, that they will intoduce business and probably add to their stake as their expectations are confirmed. Third, in contrast to Griffin, etc. it is clearly a friendly move without ulterior motives; the fact that they have made mistakes means that they are part of the human race and not aliens! Having said all that, the best thing with DGT is to tuck the shares away (enough to prove virility!) for a year or so and then come back to see a steadily emerging star.

Eric (not up early as still in Thailand!)

stockdog - 07 Oct 2005 11:38 - 1613 of 2787

eric - what you might call Thai'd up! Hope you're having fun out there.

pth - thanks for the news - not reported on Squaredeal news either. Sounds very positive.

sd

EWRobson - 07 Oct 2005 16:09 - 1614 of 2787

sd Like it! You dogs can conjure up (or down) a good turn of phrase. You tend to run over the odd dog or three plus a number of these annoying gnats (motor cycles). But great food, scenery and prices. Mary's having a course of dentistry, all her mercury replaced, for 600 pounds against 6000 quoted in UK. Both have had 4 hour medicals for the odd 200. The Old croc (me) failed my MOT: need gallstones zapped and aniogram to widen arteries, but best to know before they are real problems. Superb medical services, unlike that third world country in the old world.

Eric

white westie - 09 Oct 2005 12:37 - 1615 of 2787

good piece in the Sunday Times Business section today about the AIM Market but it looks like some people are a bit concerned they may try and stifle it with new regulations which would make it less attractive.

one of the concerns seem to be the European Prospectus Directive which seems to be causing problems now about raising money on AIM.

Check it out its a good read.

Paulo2 - 12 Oct 2005 09:08 - 1616 of 2787

Really would like to see some work coming through now!

markusantonius - 13 Oct 2005 07:40 - 1617 of 2787

'Morning, All.

The Shark is up early today - playing PTH at golf < 3 hours! Well I watched a very interesting interview with the top man at CDS on Bloomberg TV yesterday. Relevant here because he was defending his decision to list his co. on AIM as opposed to any of the other stock markets in the world. AIM is THE place to be these days, by all accounts, and even with a small amount of "luck" [no such word!], Dowgate should have plenty of opportunities to make itself very profitable over the next few months/years...

deadfred - 13 Oct 2005 13:49 - 1618 of 2787

just an opinion

has or has not the aim market been booming for more that a few years now???????

i myself was of the opinion(a long time ago now) this little share had a lot of flying potential(that was before the ex md and others sold out)
but as you guys that have been in this share for a long long long long time must know by now or may even be asking ?????

why is it not flying why why why

as you know as ive said it before i would not get back into this share again in a million lifetimes so im asking the very clever ppl who are still in this share to explain or at least give an idea to potential punters

why
why is it not flying?????????????????

just an opinion and as an ex holder who still looks in now and then

for humour purposes????????

lol




EWRobson - 13 Oct 2005 16:28 - 1619 of 2787

deadfred: not in the habit of talking to ghosts. That's one reason for not answering your question; the other being that, whether ghosts can invest at all, you state you are just not interested in investing; well, not in a million years - mind, in eternity, that could flash in the twinkling of an eye. Come back, I suggest, if you are interested in investing and, please, not before.

Eric
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