DGR shareholders, apart from a few select individuals who have the inside information namely directors and executive members, have in the main not been able to participate in SOLG and a few other offshoot companies, as they are listed on other overseas exchanges. I don't have the where-fore-all to buy on international exchanges and therefore have not gotten any benefit from these DGR offshoots. And yet DGR continues to spend everything is has elsewhere leaving nothing in the bank. Our DGR CEO needless to say holds possibly over $100 million worth of stock (have a look at the worth of his holdings in both DGR and SOLG) while still earning a disgraceful amount in excess of $1.15 million dollars Aus. per year. Directors, etc., have been able to arrange their own allocations through paying themselves very large salaries together with generous bonus and option allocations, and are or will certainly reap the rewards from that inside information.
The process seems to work like this:
- DGR pays for new company set up and all initial costs using money from DGR shareholders;
- Directors appoint themselves onto these new boards and pay themselves additional salaries + bonuses;
- DGR retains a percentage (usually around 15-20%) after raising other capital from other means;
- Share price of these new companies falter and fall substantially in value (look at the facts)assisted by DGR selling their shares/ interest at very discounted prices;
- Then Director etc pick up substantial amounts of shares in DGR and the new company (remember they know the real facts as to potential). Remember the time periods where nothing released and confidence falls accordingly;
- Share price of DGR (& other companies) falls again and again because they are not making any profit for shareholders who cannot afford to continue holding at a loss and cannot buy/sell shares on international exchanges;
- Take over results in marginal profit for small LT DGR holders while director's significant holdings in new companies are sold reaping them a bonanza;
- Profits made from sale of DGR shares in sold companies (e.g. OBS) then used to support other offshoots, paying directors etc more salaries which allow them to buy more shares in new companies, with normal DGR shareholders getting a small percentage in dividend.
DGR Price at posting:
14.0¢ Sentiment: Hold Disclosure: Held
(20min delay)
