Dolphin Capital $DCI – reentered

Have just bought back in to DCI at 6.3p 4.4% portfolio weight.  I am easing up on weights a bit as I have not had a particularly good run of ideas of late, better to be careful before I get my mojo back!

Quick refresh this is a luxury resort developer, mostly in Grece I bought in Dec 2016 before selling out at evens in April 2017.

Reasons for going back in are: Company has sold quite a few assets, many at / over NAV, giving me some confidence that the NAV’s are reasonably reliable.  I am not 100% on this, as the level of the company’s debt has decreased so has the risk – yet the share price is lower than it was a year ago. In addition their largest asset Kilada Hills has gotten planning – again not reflected in the price.  According to their factsheet there are potentially 400+ units there. They sold 20 for €10m.  That is conditional on financing / infrastructure. In addition not all the 400 will neccessarily be worth €0.5m each but it shows the value that could be there.

Their stated aim is to liquidate by Dec 2019, I doubt they will achieve this it. Range is 135-235m EUR valuation, current market cap is 64m EUR – so a decent upside.

I also refer you back to my previous post on this.




6 thoughts on “Dolphin Capital $DCI – reentered”

  1. I have spent a huge amount of time on DCI and the big problem is runnning costs and expenses. These erode the NAV day by day no matter what the discount is. Have you taken these costs into account?

    1. Excellent point.
      Unfortunately with a liquidating trust you never quite know what the exact cost is going to be. Between now and 2019 I would guess 10/20m Eur possibly as high as 30, which would be taken into account in the CO’s estimates. Even if you assume 30/40 you still get to a NAV far above current price, if you believe their valuation. For me it is one of those issues where I have to take a bit of a leap and accept I dont know with the precision I might like to.

      As you have done the work what do you think costs are going to be ?

  2. Forager Funds – September 2018 Quarterly Report:

    Dolphin Capital Liquidation Progressing
    In addition to a handful of other meetings in London, we met with several board members of Dolphin Capital Investors (AIM:DCI) to discuss progress of the company’s measured liquidation of its resort lands in Greece, Cyprus and Croatia. We then travelled to Greece to eyeball some of its larger assets.

    The August sale of the only operating asset, the loss-making Amanzoe Resort, simplifies things. It garnered a full price in our view. We think the next larger asset sale will start seeing capital returned to long-suffering shareholders. But progress with the Kilada golf resort will be the most important factor to maximising total returns—this development now has necessary approvals, a partial outside equity backer and is on the verge of getting bank financing for the first stage. Our preference is for the company to find a buyer for this asset soon after those hurdles have been cleared, a message we’ve shared with the board.

    The downside is fairly limited from here and we’re hopeful of making a decent return on the Fund’s investment over the next 2-3 years.

  3. I have looked at this on and off for it feels like a decade. I just can’t get around the complexity of the accounts (admittedly getting less complex each year) and the opaque values of what are essentially undeveloped land plus a plan to develop them. I can’t even work out what they are valuing Kilada Hills at in the accounts, even today? 20 plots at E0.5m a piece contingent on development progress is a kind of marker I guess but it all seems to opaque. Good luck though, no doubt I will be revisiting it again in 6 months….

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