Market's view on Logistics Dev
Published on April 2024
- Stock watchers have observed that DBAY appears to be pressuring Esken’s receivers into selling their stake at current market prices by setting a buyback deadline, with no other apparent buyers.
- The lack of liquidity in the stock market is noted, with minimal buying and selling activity affecting the stock price, which remains disappointingly low at 11p.
- There are concerns that buybacks have ceased, which could reflect a strategic shift by DBAY towards other investments rather than supporting the stock price through buybacks.
- Some stock watchers believe DBAY is positioning to acquire Esken’s shares cheaply, which could potentially benefit all stakeholders.
- Frustration is expressed over the continual decline in share price despite ongoing buybacks, leading to suggestions that DBAY should liquidate all investments promptly and distribute the funds to shareholders.
- The upcoming AGM is highlighted as a potential decision point for Esken’s administrators regarding their dealings with DBAY.
- There is criticism of DBAY’s investment strategy, particularly in APH, which is seen as a significant factor in the company’s underperformance.
- The end of the buyback program in May is confirmed, raising questions about the future actions of DBAY concerning its stock and investment strategy.
- Concerns are raised about Esken now being in administration, with the possibility that administrators might sell their LDG stake to cover fees, necessitating strategic purchases by DBAY to enhance shareholder value.
- Observations are made of another market player acquiring significant stock positions, suggesting increased activity or interest in the shares outside of the company’s buyback initiative.
- Discussion about DBAY using the buyback strategy not merely to support the stock price but also to enhance their controlling stake, which indirectly increases the stakes of all remaining shareholders.