Well, they are winding this down, the only reasonable thing to do. They did not need so many months of "strategic review" to come to this conclusion. I hope the sells are close to the NAV they said it had. And the money comes back quickly to us shareholders
As I say in the article extrapolating the connection and applying a mild uplift. AEC-3 is a superior connection to the others so presumably is more valuable - and data flows are growing exponentially of course which should be bullish going forward - but I kept it quite conservative.
The case for the valuation of DGI9 is well made. But the problem from the get-go has been execution. That's why the valuation is so low. The markets have decided that the managers were not, and are not capable of realising the value, through a mixture of internal conflict and sheer incompetence. I'd want to see evidence that the failings of the previous management have been overcome, but the disappointing Verne sale doesn't convince me.
Hi OB, thanks your thoughts, as ever. Personally I'd rather DGI9 run them out than sold them out. I think they all sit in desirable and /or growing markets and holding (both them and us) long term will see true exponential value, via sales when post investment income streams materialise materially or by that income representing dividend yields. Even Seaedge, which as you say is basically a property lease, is according to DGI9 an attractive (and upwards only inflation linked reviewed) yield, currently 6.8%. I like it's retention, with the long term minimal effort boring secure income helping to underpin other investments (the leassor is growing customers and underpinned (ultimately owned) by Tiger investments, whose loan is equity convertible). With regard to Aquacomms, I agree it could just be bought (be attractive) by the already involved media partners - it could also be attractive to American Towers, who are already a utiliser on the US side, to diversify out of the US. I' prefer your suggestion that DGI9 refinance, and push out loan obligations, while the lesser parts grow their income streams, even if that delays (but crucially doesn't reduce) the plucking of the golden goose that Arqiva is.
I can't believe that DGI9 as is, or slimmed down to just Arqiva as you intimate, is so undervalued and underappreciated. I am quite happy to sit with this for 5 years, albeit the 'review' will doubtless constitute a sell down of assets/wind up of DGI9 at seemingly enhancing value to current SP - albeit that will obscure the lost oppurtunity of long term appreciation/income.
Minor note, I believe DGI9's economic interest in Arqiva is 51.76%
Aqua Comms is likely next to be sold. Expect an announcement in the not too distant future
Well, they are winding this down, the only reasonable thing to do. They did not need so many months of "strategic review" to come to this conclusion. I hope the sells are close to the NAV they said it had. And the money comes back quickly to us shareholders
The problem is that the management (triple point) and the board are incompetent, to say the least.
Thanks for this. I thought that it is only accrued interest on the VLN that needs to be paid before a distribution from arqiva can be made?
Thanks! How did you come up with the EBIT increase on Aqua Comms due to AEC-3 coming live?
As I say in the article extrapolating the connection and applying a mild uplift. AEC-3 is a superior connection to the others so presumably is more valuable - and data flows are growing exponentially of course which should be bullish going forward - but I kept it quite conservative.
The case for the valuation of DGI9 is well made. But the problem from the get-go has been execution. That's why the valuation is so low. The markets have decided that the managers were not, and are not capable of realising the value, through a mixture of internal conflict and sheer incompetence. I'd want to see evidence that the failings of the previous management have been overcome, but the disappointing Verne sale doesn't convince me.
Hi OB, thanks your thoughts, as ever. Personally I'd rather DGI9 run them out than sold them out. I think they all sit in desirable and /or growing markets and holding (both them and us) long term will see true exponential value, via sales when post investment income streams materialise materially or by that income representing dividend yields. Even Seaedge, which as you say is basically a property lease, is according to DGI9 an attractive (and upwards only inflation linked reviewed) yield, currently 6.8%. I like it's retention, with the long term minimal effort boring secure income helping to underpin other investments (the leassor is growing customers and underpinned (ultimately owned) by Tiger investments, whose loan is equity convertible). With regard to Aquacomms, I agree it could just be bought (be attractive) by the already involved media partners - it could also be attractive to American Towers, who are already a utiliser on the US side, to diversify out of the US. I' prefer your suggestion that DGI9 refinance, and push out loan obligations, while the lesser parts grow their income streams, even if that delays (but crucially doesn't reduce) the plucking of the golden goose that Arqiva is.
I can't believe that DGI9 as is, or slimmed down to just Arqiva as you intimate, is so undervalued and underappreciated. I am quite happy to sit with this for 5 years, albeit the 'review' will doubtless constitute a sell down of assets/wind up of DGI9 at seemingly enhancing value to current SP - albeit that will obscure the lost oppurtunity of long term appreciation/income.
Minor note, I believe DGI9's economic interest in Arqiva is 51.76%