The facts .......DPC being a small stock usually gets forgotten, hence $1 around 2001-2002 when it should had been $1.60 at least. At present It has lost its forgotten status.The recent price surge from $1.40 - $2.18 and back to $2.03 is demand driven. What factor (or factors) is causing the demand?
Factor 1 ...Investors waking up to a hugely undervalued stock in short supply.
Factor 2....Bonus issue of the warrants.
Factor 3....Selling its pet poodle, Sterling Portfolio Management Ltd to Spices (a wholly owned subsidiary of AXA).
I have a feeling Factor 3 is not a key driver in this momentum, BUT, it will have the biggest impact fundamentally as Sterling sucked about $2M/annum. I will therefore estimated that the 1/2 year result for DPC expected to be released in mid Nov 2003 will be $1.7m + the extra saving from sterling of $1m = $2.6m ( 2002 ..$1.462m) an increase of 78%.
DPC management usually has a 40% dividend payout policy. So, with status quo, I estimate, $2.6M /20M shares X 40% = Dividend of 5.2cents (2002..3.6cents).
Therefore, on my estimated 10cents per year dividend payout on a growth share... $3 a share is not beyond belief, and this is after Nov 2003, less alone at Sept 2005 or Sept 2006.
DPC has had a remarkable growth period during the last 6 years within the financial sector, and with the possible extra money it will receive with the warrant conversion ( $17millon),with great management, the future for DPC is looking very rosy.
Bugger.... $2.4m not $2.6m profit
Bugger.... 50% not 78% profit increase
Bugger.... 4.3cps not 5.2cps
Bugger.... Shareprice $2.13 not $3.00
OK I can live with a 50% profit increase ![](gif00830.gif)
OK .. since the 23 Sept 2003 article when DPC was worth $2.03 pre-warrants.(widely recognized then that one had missed the boat).
...if you bought 10000 for $2.03 spending $20300
.you would have 10000 @ $2.13 = $21300 plus
..2500 DPCWA @ $0.74 = $ 1850 plus
..2500 DPCWB @ $0.80 = $ 2000
Total $ 25150
MMMmmmmmm 24% on your dough for 2months ...can't ask for much better when one had missed the boat.
However a crystal ball or a time machine would've be nice, as this archive post from April 2001( see below).
If you had bought then to now .
10000 @ $1.04 = $10400
now worth $25150
Richard as far as i know they dont mention a quantity just a tradeable
parcel which above $1 if my memory is correct is 100
malcolm
>From: "Richard Hooper" <hoop@ihug.co.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: <sharechat@sharechat.co.nz>
>Subject: Re: [sharechat] DPC Rocket
>Date: Tue, 3 Apr 2001 18:46:23 +1200
>
> Hi Malcolm
>
>That seems to make sense ....how many shares are needed to gain the extra
>1/2% on deposit with DPC
>Hoop
>
>----- Original Message -----
>From: "Malcolm Cameron" <malharcameron@hotmail.com>
>To: <sharechat@sharechat.co.nz>
>Sent: Tuesday, April 03, 2001 3:44 PM
>Subject: Re: [sharechat] DPC Rocket
>
>
> > Richard
> > maybe somebody wanted enough to get the extra half percent on their
>deposit
> > rates for share holders, they would not need to be investing much for
>this
> > to pay off hansomly I own some for this purpose and they give a good
>yield
> > on there own as well
> > disc i own some for this purpose
> > malcolm
> >
> >
> > >From: "Richard Hooper" <hoop@ihug.co.nz>
> > >Reply-To: sharechat@sharechat.co.nz
> > >To: <sharechat@sharechat.co.nz>
> > >Subject: [sharechat] DPC Rocket
> > >Date: Tue, 3 Apr 2001 10:56:15 +1200
> > >
> > >Seems someone has built themselves a $113 rocket ..lit the fuse and off
>it
> > >went
> > >Dorchester Pacific Ltd ( DPC) up from 104 to 113 with 100 shares traded
> > >DPC results still about 2 months away so a wonder if this person paid a
> > >cheap price to ramp this undervalued share upwards for cheap thrills or
>was
> > >it that he had to show his share portfolio to his bank manager this
>morning
> > > :))))
> > >
> > >An interesting thing emerges out from this situation ...with a company
>with
> > >a small number of shares approx18.1mill and over 1/2 of those shares
>locked
> > >up with 7 investors few shares see the trading floor .With recent low
> > >demand the shareprice has be stable (-ve trend) however there is
>potential
> > >for this share to become highly volatile if demand does return.
> > >will continue to watch with interest
> > >
> > >Disc own DPC shares.....and no it wasnt me
> > >Hoop Disc
I bought 17000 @ $0.66( 4 years ago) plus I bought a heap more at $1.04 when no body believed that the NZ stockmarket would ever rise again ...invest overseas!!!!...invest overseas.!!!!.. was the catch cry back then....remember those days.
Champagne anyone???
![](gif00840.gif) oop
PS.. don't look up my other archives, some are embarrassing, in hindsight ![](gif00841.gif) ![](gif00842.gif)
|