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.

Website: www.cityfin.co.uk

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.

and more work found by ponty in the other place


COMPANY NAME:
Pactolus Hungarian Property plc


COMPANY ADDRESS:

First Floor
Jubilee Buildings
Victoria Street
Douglas
Isle of Man


COMPANY POSTCODE:
IM1 2SH


COUNTRY OF INCORPORATION:
Isle of Man


COMPANY BUSINESS OR, IN THE CASE OF AN INVESTING COMPANY, DETAILS OF ITS INVESTMENT STRATEGY TO BE DISCLOSED IN
ACCORDANCE WITH SCHEDULE 2, PARAGRAPH (J) OF THE AIM RULES:
The company acts as an investment holding company. The principal subsidiaries are property investors and
developers targeting the Hungarian property market with an initial focus on the residential freehold market in
the more affluent districts of Budapest.


DETAILS OF SECURITIES TO BE ADMITTED (i.e. where known, number of shares, nominal value and issue price to which
it seeks admission and the number and type to be held as treasury shares):

Number of shares: TBA
Type: Ordinary Shares of 1p each
Issue price: TBA


CAPITAL TO BE RAISED ON ADMISSION:
TBA


FULL NAMES AND FUNCTIONS OF DIRECTORS AND PROPOSED DIRECTORS:

Christopher Heal Bennett Non-executive Chairman
Brett Lance Miller Non-executive Director
Christina Lillian Rawlinson Non-executive Director
Stephen Dillon Gray Non-executive Director
Barry Curtis Smith Non-executive Director
Katherine Sarah Ellis Non-executive Director
Sarah Joanne Ingrassia Non-executive Director


PERSON(S) INTERESTED IN 3% OR MORE OF THE ISSUER'S CAPITAL, EXPRESSED AS A PERCENTAGE OF THE ISSUED SHARE CAPITAL
BEFORE AND AFTER ADMISSION:

Name Before Admission: After Admission
None TBA


NAMES AND ADDRESSES OF ALL PERSONS TO BE DISCLOSED IN ACCORDANCE WITH SCHEDULE 2, PARAGRAPH (H) OF THE AIM RULES:
N/A


ANTICIPATED ACCOUNTING REFERENCE DATE:
31 December


EXPECTED ADMISSION DATE:
10 March 2006


NAME AND ADDRESS OF NOMINATED ADVISER:
City Financial Associates Limited
Pountney Hill House
6 Laurence Pountney Hill
London
EC4R 0BL


NAME AND ADDRESS OF BROKER:
Hichens, Harrison & Co. plc
Bell Court House
11 Blomfield Street
London
EC2M 1LB


DETAILS OF WHERE (POSTAL OR INTERNET ADDRESS) THE ADMISSION DOCUMENT WILL BE AVAILABLE FROM, WITH A STATEMENT
THAT THIS WILL CONTAIN FULL DETAILS ABOUT THE APPLICANT AND THE ADMISSION OF ITS SECURITIES:

City Financial Associates Limited
Pountney Hill House
6 Laurence Pountney Hill
London
EC4R 0BL


DATE OF NOTIFICATION:
22 February 2006


NEW/ UPDATE (see note):
New


QUOTED APPLICANTS MUST ALSO COMPLETE THE FOLLOWING:

THE NAME OF THE AIM DESIGNATED MARKET UPON WHICH THE APPLICANT'S SECURITIES HAVE BEEN TRADED:

THE DATE FROM WHICH THE APPLICANT'S SECURITIES HAVE BEEN SO TRADED:

CONFIRMATION THAT, FOLLOWING DUE AND CAREFUL ENQUIRY, THE APPLICANT HAS ADHERED TO ANY LEGAL AND REGULATORY
REQUIREMENTS INVOLVED IN HAVING ITS SECURITIES TRADED UPON SUCH A MARKET:

AN ADDRESS OR WEB-SITE ADDRESS WHERE ANY DOCUMENTS OR ANNOUNCEMENTS WHICH THE APPLICANT HAS MADE PUBLIC OVER THE
LAST TWO YEARS (IN CONSEQUENCE OF HAVING ITS SECURITIES SO TRADED) ARE AVAILABLE:

DETAILS OF THE APPLICANT'S STRATEGY FOLLOWING ADMISSION INCLUDING, IN THE CASE OF AN INVESTING COMPANY, DETAILS
OF ITS INVESTMENT STRATEGY:

A DESCRIPTION OF ANY SIGNIFICANT CHANGE IN FINANCIAL OR TRADING POSITION OF THE APPLICANT, WHICH HAS OCCURRED
SINCE THE END OF THE LAST FINANCIAL PERIOD FOR WHICH AUDITED STATEMENTS HAVE BEEN PUBLISHED:

A STATEMENT THAT THE DIRECTORS OF THE APPLICANT HAVE NO REASON TO BELIEVE THAT THE WORKING CAPITAL AVAILABLE TO
IT OR ITS GROUP WILL BE INSUFFICIENT FOR AT LEAST TWELVE MONTHS FROM THE DATE OF ITS ADMISSION:

DETAILS OF ANY LOCK-IN ARRANGEMENTS PURSUANT TO RULE 7 OF THE AIM RULES:

A BRIEF DESCRIPTION OF THE ARRANGEMENTS FOR SETTLING THE APPLICANT'S SECURITIES:

A WEBSITE ADDRESS DETAILING THE RIGHTS ATTACHING TO THE APPLICANT'S SECURITIES:

INFORMATION EQUIVALENT TO THAT REQUIRED FOR AN ADMISSION DOCUMENT WHICH IS NOT CURRENTLY PUBLIC:

A WEBSITE ADDRESS OF A PAGE CONTAINING THE APPLICANT'S LATEST ANNUAL REPORT AND ACCOUNTS WHICH MUST HAVE A
FINANCIAL YEAR END NOT MORE THEN NINE MONTHS PRIOR TO ADMISSION AND FULLY AUDITED INTERIM RESULTS WHERE
APPLICABLE. THE ACCOUNTS MUST BE PREPARED ACCORDING TO UK OR US GAAP OR INTERNATIONAL ACCOUNTING STANDARDS:

THE NUMBER OF EACH CLASS OF SECURITIES HELD IN TREASURY:




Note: THIS FIELD SHOULD INDICATE THAT THE ANNOUNCEMENT IS 'NEW' AND ALL RELEVANT
FIELDS SHOULD BE COMPLETED. OTHERWISE WHERE THE FORM IS REQUIRED TO BE COMPLETED
IN RESPECT OF AN 'UPDATE' ANNOUNCEMENT, THIS SHOULD BE INDICATED. IN SUCH CASES,
ALL THE ORIGINAL INFORMATION SHOULD BE INCLUDED WITH ANY AMENDED FIELDS
EMBOLDENED.

Good topping up time ahead of the results. I don't think this level will be seen again. Momentum is clearly growing. Named as a five-star buy by British Bulls. No doubt have direct contact with the principals.

Eric

Good topping up time ahead of the results. I don't think this level will be seen again. Momentum is clearly growing. Named as a five-star buy by British Bulls. No doubt have direct contact with the principals.

Eric

Thanks, Paulo. This is now in the model at 15k retainer and 10k placing/advice fees, let me know if you see actual fees quoted in due course.

Did a bit of figuring whilst in bed with Prussian flu (sadly NOT Prussian Sue!) last couple of days after exhausting trip to Berlin. I upped my new client win from 2 to 2.5 per month - still less than current showing this year (8 new clients in less than 2 months). With associated estimated fees for placings/broking etc this adds 292,500 revenues, worth 195,000 to the bottom line after allowing 1/3 for staff bonuses (assume overhead fixed for now after recent new key man appointed).

This is an EPS of 0.0923p for a prospective PE of 6.66 (at today's mid price of 0.615) and a PEG of 0.11. Using my guide of a more expected (conservative) PE of 12.5 for a growth stock of this nature, the SP should be nearer 1.15p. Same ball park as Master Eric likes to play fetch in!

Can't take on any more of this stock - already represents 16% of my portfolio. Looking forward to results and a great forward looking statement from Mr Tony "Understatement" Rawlins!

sd

sd I can see problems ahead for you. If DGT is 16% of your portfolio, when the price doubles (if everything else stays the same), the ratio becomes something like 28.5%. Is that a problem? Actually, my proportion is approximately the same but then I only hold 6 shares and DGT is behind AZM and ASC. No point in dilution for its own sake.

Eric

I look forward to needing your further advice oni that particular problem!

Looks like a bit of a minor shake going on with MMs a bit short of stock in the run up to announcements. Unless someone knows enough to want to sell before they're announced. Can't think what that would be.

sd

Offer dropped right down whilst bid stays the same today - a spread of only 5% instead of the usual 15%! Quite a lot of stock churning through roughly equal buys/sells. What does this signify - feels like some people are getting ready for action one way or the other?

sd

Called in for a bit of relaxation after quite a heavy meeting of development committee at Golf Club. My canine friend needs help! Interesting that buys outweight sell but offer price drops. So oits not a big buying order in the background. The narrowing of the spread suggests that the MMs sense the marekt getting going ahead of the results and they want to encourage a two-way trade. It will be interesting to see how the market develops tomorrow. Last tradde was a trade buy possibly just to balance the books and at the price of an earlier buy in the market. Is another possibility that one MM is on offer and another on the bid which is narrowing the gap (didn't look at L2 today)?

Eric

Better make the most of your freebie Level2, Eric, as it nears it's 12-month end! You may have to settle for 6 months' worth come 8 June?
(Sorry - slightly "off topic" here!) :o)

Yeah, marcus, happy to settle for runners up now with the Shark on his home course! Not sure I've learnt how to use Level 2 as don't seem able to predict movements from it. Go with the trend appears more potent. Hope you have your million ahead of results.

Eric

Dowgate Capital 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 57,000,000 ordinary shares in Dowgate, representing approximately
9.21% of Dowgate's issued share capital.

.

old scrooge is tight with words as well!

lol

Only buy 100k online but you can sell 1.5m.

Seems they want our shares but aren't willing to move it up. Kinda suggests there's still a big buy order from RIL.

Wouldn't be surprised if RIL have set a target of say 10% of the company. There is a lot of activity for a share that is not moving anywhere in the face of solid fundamental value. Value will out - sit tight.

New word definition in honour of Eric - virillion, a respectable minimum holding of shares (SOD - StockDog Oxford Dictionary)

sd

MM's are accepting 1/2m volume to sell so I tend to support Paulo2's sentiments, above. They want our stock which can only mean one thing.....

:o)

There's one investor over on the other side who claims to have paid 0.67p for 500k today. It still hasn't shown up. Said he tried for 1m but was quoted 0.7p.

An investor from 'over on the other side'.......that must be deadfred then, glad he's seen the light and bought back in!....he'll make some money at last!

sd Glad you've proved your virility - lots of little puppies around, then? Hope they're not mongrels.

Well, we should know by Tuesday, it seems; not that DGT are into nonsense like announcing the date formally. I'm predicting celebrations - as the shares are in my wife's name, she can pay for once!

Eric

Still a wide spread and when it peaked many moons ago exceeding 1.50p - I can recall it's spread being just 0.01p (that's 1/100th. of a penny!). Once/if I see a similar shortening then I think that's the time we should all start believing that this minnow is finally going places.....