hangon
- 23 Jan 2007 17:39
Clearly the bottom wasn't 5- (sorry), but I didn't know there was a large holing of over !0m shares to sell ..... that's some loss eh? Assume they paid maybe 20p (2m) - they probably got 35k back - make you realise that those with OPM (other people's money) are not as smart as their investment literature suggests.
Perhaps it shows that big investors don't have time to check up with their companies =- they rely upon company News and Accounts, just like us Fools.
Will DGP survive?
It depends if you think the Co News is over-reaction and that the Seller (Redbird?) was wrong to dump their stock at a critical time - Xmas Retail was making all investors nervous - and DGP has delayed opening some shops...
I don't know..
- but something made me take a small punt the day before the Seller arrived, so I missed the Bottom (it was close!) and maybe as the stock is absorbed the sp will recover....at this time it is a broad-backed gamble .....a toss of a coin is a narrow gamble as it's all or nothing - - - DGP could be a long-time in melt-down - OR a long time in recovery - I don't think "multi-bagger" applies to this one the recovery is more driven by the stock being less-liquid and that will happen as punters like the Company story - and not anything I suggest because I really do not know. I hold this stock from ages ago when it was 80p - thankfully my average is into single figures now.
......do I feel lucky.....?
...No,..No,...No, - but I do not believe the business is as bad as today's sp indicates - this company will post a turnover close to 18m with some losses and restructuring for sure - but there are Dozens of AIM stock far worse - - except their Managements are still smoking the pipe of "Good Times Soon" . . . . .
Look at some "Green companies" . . .with costs that are through the roof and precious little to offer customers....basically they ae trading on some dream and hope their costs come down - - - but WHY would anyone invest at such high levels? - Probably the same as I did when buying DGP at 80p - there was no-way a small company with (then nearly Zero turnover) was worth more than 8p and that's 8x the face-value of the shares...
Whereas now the shares are trading at half their face-value...yipee!
DYOR - I am completly mad - and Sad.