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DES, DESTRA CORPORATION LIMITED
heytesbury
post Posted: May 2 2008, 10:42 AM
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In reply to: twotoneh on Thursday 01/05/08 12:35am

Unfortunately for Mum & Dad investors, ASIC has no teeth.

They spend years chasing the likes of Rivkin around and
are ignorant (Or Blissfully Unaware) of the real problems.

Good Luck

 
twotoneh
post Posted: May 1 2008, 12:35 AM
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In reply to: heytesbury on Tuesday 29/04/08 09:25am

Heytesbury,

I assume you've heard the reasons behind the sudden SP surge on Monday (based on your post), and you may or may not be aware of the reason for its easing back on Tuesday and Wednesday.

In case you haven't, and also for the benefit of others reading this thread, here's a summary of it ...

Whilst I'm not able to verify how exact the following quotes, as I don't have access to the articles / publications, it is apparently to do with recommendations made by a tipping sheet called 'Invest4Profits', and apparently the following was said (although don't quote me on it; please verify it yourself ... this is third-hand via another share forum site ... HC, by a user called 'Oscar') ...
QUOTE
Then we have an Email from T4P go out 28/4/2008 first two paragraphs read

“ It's NOT often you get to know
about a takeover in advance,
but today is one of those days”.

“Prime WILL make a takeover
offer for Destra this week.”

{Pretty strong stuff from a respected analyst. I wonder how you do get to know of a takeover in advance? }

Then the following day a second T4P email calls it unlikely and adds

“It's now back to 12 cents,
- but Prime will want it lower
before they step up.”


Cheers.

p.s. this, amongst many other goings on recently in regards to destra / Prime / ANZ etc. are the subject of which many of us on this other forum are going to lodge complaints with ASIC to investigate ... there have been some very 'interesting' developments of late to say the least ... I for one suspect something dodgy events have occurred of late, but the question is who, what, when exactly?! thumbdown.gif



Said 'Thanks' for this post: maxman  
 
heytesbury
post Posted: Apr 29 2008, 09:25 AM
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Posts: 17


In reply to: Maazel on Thursday 24/04/08 09:07pm

Hmmm...I wonder what premium PRT (Prime) will put on top of the current price of 13.5 cents when they make a takeover bid for destra .

We won't have to wait very long to find out.


 
Maazel
post Posted: Apr 24 2008, 09:07 PM
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QUOTE (twotoneh @ Thursday 24/04/08 02:20am)

twotoneh,

It's good to see your take on it.

I agree they have had there share of bad luck/timing, and some bad management to end up in this position. Hopefully Prime will inject some good business procedures to the company.

I'll wait awhile before making any desicion's, if this stock will stay in my portfolio ( I'll prob give them about a year, which should be about enough time to get some stratedgy's in place) I am a long term investor, so I try not to jump ship to often and too quick, I like to make considered desicions.

Over all I still think Destra can and should have a bright future, I believe it's positioned nicely for the way media is going in the future. But having said that I like to see a company with a clear plan and vision on how they are going about there business.

Only time will tell how it goes....

 
twotoneh
post Posted: Apr 24 2008, 02:20 AM
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In reply to: Maazel on Tuesday 22/04/08 03:31pm

Maazel,

QUOTE
This low acceptance may show a lack of faith in the current direction/management of the company or could be merely a case of bad timing and external factors of not enough cash to re-invest for most shareholders.


The low acceptance of the rights offer was simply because the SP was below the offer price. Why spend more money than required, when you can pick it up more cheaply on-market?

The Opes-prime / ANZ dumping of the director's shares was primarily to blame for that. It had been at around the 11c-12c mark when the raising was announced, but then that happened.

The SP downward spiral was due to a series of events, all culminating in a 'perfect storm':-
- from 40c, the Magna Pacific shareholders who acuired DES scrip as part of the takeover sold it down to 25c
- the market downturn (US subprime) took it down to 17-20c
- a particular tip-sheet (not to be named, for fear of censure) suddenly downgraded DES to a sell, and that brought it down to the 10c mark
- just as it was considered oversold, and the SP was coming back up, the following happened:-
a) in the same announcement as the much awaited sale of the Magna Pacific warehouse (for $19M), that should have raised the SP, they announced te capital raising. Crazy stuff. Why not wait for the SP to increase, then do the rights issue at a higher price?
b) almost immediately afterwards, the Opes-prime event happened:
.... i) the 10% BYI blocking stake was margin-loaned via this; gone! $900K writeoff
.... ii) two of the director's holdings, including Dom's, were under threat (now subject to court action)
.... iii) the director's shares were immediately dumped on the market (23M) on behalf of ANZ grrr.gif , bringing the SP down to 7c, and the SP never recovered ... slowly back up to 8c, then 9c, then around the 9.7c mark just prior to the rights issue closing

Other than the bad judgement re. the timing of the rights issue, and possibly doing business with Opes-prime (but who was to know at the time), it really was a run of bad luck. And of course Prime were very astute in their underwriting of the issue ... they had to know they were in with a chance.

I'm sad to see Dom go ... I feel as if the company is losing its mojo, although many on another share site feel that the Prime takeover thumbdown.gif (it will be with eventual 3% creep allowances) will be good for the company, and add more hard-nosed business focus to get the financial results ... we'll see.

Never a dull moment with this company ... another poster from another site ('OscarOne') came up with the appropriate title: 'the DES of our lives' !

Cheers.

 
daggie
post Posted: Apr 23 2008, 03:49 PM
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In reply to: Maazel on Tuesday 22/04/08 03:31pm

Thanks Maaz, we will have to wait and see. It would be pointless to panick and sell. Regards.

 

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Maazel
post Posted: Apr 22 2008, 03:31 PM
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QUOTE (daggie @ Monday 14/04/08 03:06pm)

Well it's been an interesting period for Destra...

I'm still trying to work out exactly what has happened and what it means for the future of Destra...

As far as my rough maths can work out, only 22% of non-Prime shareholders took up the offer for the rights issue. ( I didn't participate for reasons outline in a post a couple of weeks ago)

This low acceptance may show a lack of faith in the current direction/management of the company or could be merely a case of bad timing and external factors of not enough cash to re-invest for most shareholders.

By the looks of things Prime has conducted a bloodless coup and seized control of the company. And is forcing the existing management out. And conducting a 'review of current strategies' or in plain speak "the old management was stupid and wrong and we know better how to run Destra"

BTW, I'm a complete business outsider and have no knowledge of what is going on for sure, am just piecing bits together.

So what does this mean for the future??? in short I have no idea.....

I thought Destra being currently a profitable company there where better ways to re-structure and run the business than to to a capital raising which effectively hands control of the company away. Or at the very least dilutes current shareholders value away. 480 mil outstanding shares seems alot to me for a small cap company? what does anyone else think???

I guess we will have to wait and see what Prime does. Does anyone have any knowledge of Prime's management track record - good, bad or indifferent??

This is definatly not the direction I thought this company would be going when I came on board a year ago. But I guess that's the fun and frustration of stock investment, it can lead any where wink.gif

 
daggie
post Posted: Apr 14 2008, 03:06 PM
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In reply to: twotoneh on Monday 14/04/08 02:09am

Thanks for your comments twotoneh. DES will require a lot of patience.

 
twotoneh
post Posted: Apr 14 2008, 02:09 AM
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In reply to: daggie on Saturday 05/04/08 04:49pm

Daggie and Maazel,

It's nice to see some people actually creating posts on the DES thread, rather than just 'ShareScene Radio'. It's been a while.

destra has had a run of bad luck and bad timing, obviously also linked with the general market downturn as so many other stocks have suffered.

First there was all of the selling by the MPH (Magna Pacific) shareholders who received part of their payment as DES scrip; that drove the price from 43c down to the mid-20s.

Then there was the overall market, which lowered it to the 17c mark.

Then there was a particular tipping-sheet that issued a 'sell' recommendation for DES, which brought the price down to 10c, although the SP started to recover slowly after that.

Then the capital raising was announced, as a result of the credit-crunch, but also terrible timing ... who would do a capital raising in these market conditions? Unfortunately this was announced at the same time as the positive news about selling the Magna Pacific building, so it didn't get a chance to increase from it, instead nose-diving back to 10c.

The Opes-prime ... ouch! ohmy.gif Bad luck, I say. Bad management you probably say. Many elsewhere have mentioned that the directors buying stock through Opes was a way of using the value of their stocks rather than having to sell some, which is a big no-no these days. It was bad luck that they happened to do it through a broker that ended up being so dodgy and going under due to creative accounting to protect their largest clients from margin calls a year ago. Also, the BYI fiasco actually saved destra money in long run, from what was ultimately a failed bid attempt, in that the debt is now cleared (a one-off hit on the balance sheet), over and done with.

Be all of that as it may, I think the 8c-9c range might have passed (although tomorrow will probably be a bad day on the ASX, so who knows what will happen), and the 7c action was a very temporary Opes Prime / ANZ dumping sequence, including a cross-traded 17M share transaction (plus the remainder of the 23M total). Where's the ASX release for the buyer of the 17M share trade? unsure.gif That surely must be a 'substanital holding' notice waiting to happen (but never eventuated).

Cheers all.

 
daggie
post Posted: Apr 5 2008, 04:49 PM
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In reply to: Maazel on Saturday 05/04/08 12:19pm

Agree with you Maazel. On Friday we have got the offer from DES to buy around 6500 shares at 0.10c. Sounds cheap enough, but we will not participate just because of them being so vague, and basically saying nothing special.

 
 


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