edited by moneyam

Extracts from city code of take-overs and mergers to which DMR is exempt....

General Principles:
1. All shareholders of the same class of an offeree company must be treated similarly by an offeror;

2. During the course of an offer, or when an offer is in contemplation, neither an offeror, nor the offeree company, nor any of their respective advisers may furnish information to some shareholders which is not made available to all shareholders. This principle does not apply to the furnishing of information in confidence by the offeror company to a bona fide potential offeror or vice versa;

3. An offeror should only announce an offer after the most careful and responsible consideration. Such an announcement should be made only when the offeror has every reason to believe that it can and will continue to be able to implement the offer: responsibility in this connection also rests on the financial adviser to the offeror;

4. Shareholders must be given sufficient information and advice to enable them to reach a properly informed decision and must have sufficient time to do so. No relevant information should be withheld from them;

5. Any document or advertisement addressed to shareholders containing information or advice from an offeror or the board of the offeree company or their respective advisers must, as is the case with a prospectus, be prepared with the highest standards of care and accuracy;

6. All parties to an offer must use every endeavour to prevent the creation of a false market in the securities of an offeror or the offeree company. Parties involved in offers must take care that statements are not made which may mislead shareholders or the market;

7. At no time after a bona fide offer has been communicated to the board of the offeree company, or after the board of the offeree company has reason to believe that a bona fide offer might be imminent, may action be taken by the board of the offeree company in relation to the affairs of the company, without the approval of the shareholders in general meeting, which could effectively result in any bona fide offer being frustrated or in the shareholders being denied an opportunity to decide on its merits;

8. Rights of control must be exercise in good faith and the oppression of a minority is wholly unacceptable;

9. Directors of an offeror and the offeree company must always, in advising their shareholders, act only in their capacity as directors and not have regard to their personal or family shareholdings or to their personal relationships with the companies. It is the shareholders' interests taken as a whole, together with those of employees and creditors, which should be considered when the directors are giving advice to shareholders. Directors of the offeree company should give careful consideration before they enter into any commitment with an offeror (or anyone else) which would restrict their freedom to advise their shareholders in the future. Such commitments may give rise to conflicts of interest or result in a breach of the directors' fiduciary duties;

10. Where control of a company is acquired by a person, or persons acting in concert, a general offer to all other shareholders is normally required; a similar obligation may arise if control is consolidated. Where an acquisition is contemplated as a result of which a person may incur such an obligation, he must, before making the acquisition, ensure that he can and will continue to be able to implement such an offer.

What has DMR done with 16m of stone deposits and 1.3m current assets - good question....I'm guessing as the stone business has been 'sold' the carrying value of the stone deposits has been written down to 0 as why have a stone asset listed when it cannot be extracted. Just guessing but I'd suggest they'll find some value in it somehow further down the line....

I believe the most likely target to be aquired is a diamond prospect/mine....diamonds are in fashion at the moment and prices are very high with no sign of slow-down.

Directors already hinted at an SA natural resources aquisition, which basically means diamonds or gold in my view. Diamonds is the best bet IMO. As for the monkeys running the operation, I have suspicions that Mr G Hoodless of the Market Maker fame I believe is using this a 'retirement' project.

He's already invested 100,000 at 0.5 and lets not forget, this aquisitions and mergers expert is already a director...

Time will tell but IMO deals are being brokered as we speak and a new resources company will be revealed with Mr Hoodless or a pal at the helm. I believe they will also grant themselves lots of options at silly prices as part of the reverse aquisition.

Best not forget the Bermudan connection either (company is registered there), that means it could work either way as the company is not subjecvt to AIM rules on takeovers and mergers:
a) aquisition is made a rediculously low price, options are granted and UK market brings the price through the roof.
b) existing shareholders get marginally screwed with a consolidation and substantial placing

I go with option a) hence am accumulating stocks while everyone is asleep.

The price crossed the ten and fifty day moving averages today...could cross the 200 day moving average for the first time this year fairly soon - big positive signal I would have thought.

Sue Helen - Why don't you clearly indicate which of your posts are your own thoughts and which are posts that you have merely nicked from posters on other sites, such as the one that forms the bulk of your header?

More importantly much of the comment here is daft speculation that contradicts DMR's own results statements.

DMR have clearly stated that the assets have been written down to the expected realisable value upon disposable by administrators.
There is no mention of any stone assets being retained.

All IMHO, DYOR etc.

Rgds
dell

From the interims:
The Directors are examining new projects to be injected into the Company, but it remains difficult to conclude any arrangements until the cash value of the South African assets can be ascertained. Once again, shareholders will be informed of progress as soon as possible.


...so one can assume that as soon as the final cash value of assets being sold is ascertained, they will be progressing with 'a new project to be injected into the company'

as for timescales? It depends how you interpret this statement:

Arrangements have been made to auction the bulk of the assets, and in particular the freehold factory situated in Vredendal, during the month of October, unless a satisfactory offer is received prior to then. An announcement will be made at the appropriate time.


...I read it as 'we will know the cash value of assets realised within the month of October'

...so assuming they are in the 'concluding' stage of negotiations regarding business to be injected could be anywhere from early November to early new year.

How do they pay for the injected company (reverse aquisition)? maybe the issue of new shares or maybe convertible loan notes at say 1 - 2p which will look rediculously cheap in 2 - 3 years time...all speculation but an interesting few months ahead (at last!)

Trades over 18,000 shares are delayed in reporting by 1 Hour.

Tick up on the bid to 0.20 pence....delayed buys at 0.30 pence should come through later.

The price has just crossed the 200 day moving average....very positive signal.

Up on the bid again and the offer now as well...0.25-0.35 pence...further delayed buys should be forthcoming.

Interesting a 100,000 buy has come through at a premium to the offer at 0.40 pence.

450,000 shares bought today and the price leaped 33.00% to close at 0.25-0.35 pence. I get the impression MMs are holding back a lot of stock for possible good news. I know myself how they were limiting how much stock one could buy when I was buying my shares yesterday.

BUY
CONFIRMED

Dimension Resource
Daily Commentary

Our system posted a BUY CONFIRMED today. The previous SELL recommendation that was confirmed was made on 09.05.2005 (152) days ago, when the stock price was 0.2000. Since then DMR has gained 50.00% .

Were you eager to go long? Well, without doubt, it was the right time to do so. The BUY signal was finally confirmed, and most probably you have called your broker and placed your long orders with no hesitation.

Don't worry if you have missed this buying opportunity. The market may now give you a second chance. You may still find good prices for buying in the next session.

[MOTTO OF THE DAY]
Buying was right in a nice bullish day
Hold your stocks now whatever they say

Candlestick Analysis
Todays Candlestick Patterns:

White Marubozu



Today a White Marubozu was formed. This shows that the buyers controlled the price action from the first trade to the last trade.

http://www.britishbulls.com/StockPage.asp?CompanyTicker=DMR&MarketTicker=INDUSTRIALS&Typ=S

Coincides with my earlier posting about the price breaking the 200 day moving average for the first time this year.

Definite uptrend mode now after year's of downtrend.

Just because the asset value has been writen down, does not mean that it may not re-appear or return value at a later stage. Take BSP as an example...having written down assets substantially through the 'growth' stage of the businesses, they are now beginning to realise the assets at a value far in advance of new book value - different time, different outlook, different book value...

Excuse the poor anology but its early its like a swimming pool, writing down the asset of the pool through a prolonged water shortage (i.e. contains no water for two years) as it cannot generate income and nobody can go swimming. Once the water shortage is over and the swimming pool full again its asset value can increase....

DMR paid 20m for the assets when they were simple unworked mines (there was no 'mining business' then. They remain unworked mines and therefore if they were going to sell them they would have an asset value of several million (maybe not 20 as the currency fluctuation has gonbe against them.

As they are not going to sell them - they are 'mothballed' for DMR's purposes - it makes sense to write the value down

Added another 200,000 shares to my holding at 0.35 pence.

I think its dawned on the market makers that should reaction to auction price RNS in Oct or company injection be positive, they don't have enough stock to satisfy demand.

Volume has started slowly picking up since last Thursday.

I think the Volume will continue to build today.

Just bought a futher 250,000 shares at 0.30 pence....

And managed to get another 99,983 shares at 0.30 pence as well.

My buy trades will come through in an hour.

SueHelen

How many of these have you now got ?

K******

I have bought around 1.30 million shares now since last Thursday in these....have to buy in tranches to get good prices.