Sell at 11c? ... damned if I do and damned if I don't. Up over 40% if I sell at 11c. I'm just worried that the latest stated TNAV of 18c is made up mostly from the claim from the Gauteng government. And I would suspect that this has not been settled yet (been more than 8 months). If there are any issues with the claim, then who knows what could happen. We all know what has happened with other JSE-listed companies trying to get claims settled with government.
hmmm, I see your problem. Don't track this stock - but my personal view is that I hold shares for growth and I don't trade penny stocks, because liquidity and spread risks are too high. So if it were me, I would cash out now. You will never get the TNAV when this company unwinds. There will always be some #%#$ creditor claiming more than his share, and some director claiming preference, etc. so you have no real idea of what the unwinding figure will be. Time value of money and all - I would take the hit - and look for a good quality growth stock in the current environment, not one that is dead in the water anyways.
It may be worth waiting a few weeks - the June interims are due, we might get some feedback on the Gauteng Government money. Also there is only a bid for 88517 shares at 11 cents. In fact few bidders and few offers.
Might do so Klapka - with the rest of the market so volatile it might be a good thing (nothing else to trade). The 11c bid seems to be a recurring one ... once the 100K bid that is there is taken out, another one comes in soon after.
Thanx for the advice skaaptjop, but I use a small portion of the portfolio for my 5-2 trading system (5% in 2 weeks that is - doesn't matter what the stock is). Made some good money with that, but just in limbo as to get out of DLG and move on or sit and wait for the unwinding (which i suspect if around 15 or 16c).
Not much activity. The trading statement also confuses me as the share will be suspended the end of next week if nothing (new assets or winding down) is announced or done since DLG is a cash shell. I'm selling!
I know the trading update was expected (you could have written it after the last set of results), but why do we need it. The focus must be on the winding down. The results is not expected for a few weeks. Says to me that the winding down will be taking a wee longer than shareholders originally expected. Shareholders wants to know about the winding down. The JSE confirmed that the 6 month period expires on Sep 8 before it gets suspended. Remember that if things are not sorted 3 months after the suspension, the listing will be terminated.
The trading statement is just to conform with JSE regulations. I think results will be out next week. However the big question is when Gauteng Government will pay the R103m they promised to pay in May. DLG are shocking communicators.
Got some sold at 12c ... such is life hey. The SENS also doesn't say anything of what happens after the suspension ... is there going to be any assets/claims left for distribution or is that it and the listing termination?