Donegal Creameries (DCP:ID)

wired117 · 06-12-2014 01:47AM

Looks like good news

wired117 · 06-12-2014 01:49AM

Looks like good news

lucky john · 06-12-2014 08:43PM

wired117 wrote: »

Looks like good news

I'm not sure if it changes anything. It establishes the fact that MM can't just ignore DIG and just close on the shares. If they want them the have to buy them. Setting the price at €30 million would be great if MM intended to buy them but I very much doubt they have that kind of money. As it stands they are already very highly leveraged and cutting costs. They are also under pressure with the dutch business they bought a couple of years ago. The discussion on labour laws there could have a big impact on the viability of the entire horticulture business in Holland. Granted, if the dutch mushroom industry has a down turn its going to improve the irish and uk industry. Good for MM if it wasn't for their big Dutch spend, which ironically led to the court case in the first place.

The problem remains for DIG that MM is really the only customer for the 35% share holding. They would dearly love to get it but not for a 30 million price tag. The value of the asset will continue to show up on DIGs balance sheet but the question is "is it really a 30 million asset".

wired117 · 07-12-2014 11:41AM

Certainly valid comments, not sure but I had thought there was an agreement that MM would have to buy back the DIG holding or possibly list on stock exchange. If they can't afford to do either, well it could get interesting. Regardless of outcome, hope it spurs on DIG shares!!

lucky john · 07-12-2014 02:24PM

MM floating on the stock exchange would be an interesting adventure. They are one of the biggest mushroom producers in the world with international businesses. The money from a float would be welcome . Also good for DIG if the result was getting the €30 million. Its not impossible but the Wilson family are MM and I would be very surprised if they would give up the control of the company. Still, this court case could humble them a little.

wired117 · 12-12-2014 02:02PM

Read goodbodys snippet during the wk, that any monies would be used to pay down debt, the mind boggles!

lucky john · 12-12-2014 02:34PM

wired117 wrote: »

Read goodbodys snippet during the wk, that any monies would be used to pay down debt, the mind boggles!

Were they referring to a monaghan float or monaghan paying 30mil to DIG?

wired117 · 12-12-2014 05:48PM

Monies coming from court case from judgement against Monaghan. DIG have about EUR 12M debt so would clear it if came through. only few lines really from Goodbodys..

PlayByTheRules · 30-12-2014 05:58PM

I think the weak hands have almost been shook out. I doubt the disagreement with Monaghan Mushrooms is what brought this down. There were a lot of momentum investors joining this party in 2014 and once they are cleared out we should be able to start moving upwards again. This stock tends to lag in Winter months anyway, 2nd quarter is usually a stronger quarter.

Keep the faith.

Gman1987 · 28-01-2015 01:15AM

I see Donegal Investment Group are busy buying up shares, anyone know has something happened?

PlayByTheRules · 28-01-2015 10:14AM

They never stated that they were going to engage in buybacks so I'm not sure what they are at. There was no real market for the stock and it was trading close to its core NAV so I suppose it makes sense to inject some liquidity. We are still waiting on what action will need to be taken on their stake in Monaghan Mushrooms and any further land sales. The specialty dairy segment seems to be picking up, I see their Nomadic yoghurts in most of the large multiples nowadays. Never much official news with this one so we await full year results to get the full picture. The directors have been buying stock on the open market also so there are certainly encouraging signs.

wired117 · 28-01-2015 06:40PM

Think they are buying back to have shares for options granted to Directors. Think this will keep going up, had to sell my lot there this wk, hoping to get back in February.

wired117 · 02-02-2015 09:27PM

http://donegaligroup.com/news/announcement/

wired117 · 02-02-2015 09:27PM

Not good news at all

PlayByTheRules · 02-02-2015 09:33PM

Yes a profit warning is never great news. The seed potato business never fully took off really. I think the story with this stock still remains the sum of the parts though. I think they'll take in over €2m on the student accomodation so that should cut the debt further. We could be left with a company that has average core businesses but is debt free & owns a lot of land and other valuable stakes, which is not the worst outcome. Directors still seemed happy to buy above €5.50 so that must stand for something.

lucky john · 03-02-2015 04:24PM

wired117 wrote: »

Not good news at all

when a company uses the words "considerably less" in a trading statement it is definitely not good. Surprisingly the share price is fairly stable though.

Sonnenblumen · 03-02-2015 06:48PM

wired117 wrote: »

Not good news at all

in the circumstances, a bit of an understatement. I'd expect the SP to plummet ( fall - 10.0% at least).

PlayByTheRules · 03-02-2015 07:44PM

I think the reason for the lack of a sell-off is probably because there is not much liquidity. Also, I wonder are most investors invested for the same reason as Argos Investment Managers, to wait for the value to be unlocked? If you consider this stock as a holding company there is an investment case but as an actual operating business with strong product lines then I would say it's a very weak investment case. Nice of them to give a heads up on profit warning though.

PlayByTheRules · 26-03-2015 01:02PM

How far down is this one going to go? Management are awful at trying to breathe some life into this stock, never good for a small cap. Suppose we'll get annual report this time next month and Argos Investment Managers seem to be still invested.

MoneyCrowd · 22-05-2015 10:32AM

"The majority owners of a Co Monaghan-based global mushroom and compost business have been ordered by the Commercial Court to buy out a minority shareholder’s interest for €30.6 million."

- Irish Times

lucky john · 22-05-2015 05:24PM

MoneyCrowd wrote: »

"The majority owners of a Co Monaghan-based global mushroom and compost business have been ordered by the Commercial Court to buy out a minority shareholder’s interest for €30.6 million."

- Irish Times

Equities: Donegal Investment Group - progress on shareholder oppresion claim
Yesterday afternoon, Donegal Investment Group (DIG) announced that in the on-going shareholder oppression claim
taken by it against Elst (the holding company of Monaghan Middlebrook Mushrooms), the majority shareholders in Elst
have admitted specified and unspecified acts of oppression. Given that admission, the Commercial Court has ordered the
majority shareholders in Elst to purchase the shares held by DIG at the price fixed by the Court on 05 December 2014.
The Court had determined that DIG’s share in the company was worth €30.6m, based on a 35% shareholding. The Court
also found that certain third parties had an option to acquire 5% of Elst held by DIG and if exercised and shares
transferred, DIG’s interest in Elst would fall to 30%. Consequently, the value of DIG’s holding would fall to €26.2m. Both
the valuation and option entitlement are under appeal. These various actions and the value attached to them have been in
the public domain for some time and while yesterday’s announcement gives reassurance that the dispute is a step closer
to resolution, it has no impact on DIG’s core business

Donegal Creameries (DCP:ID)

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