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clock Created with Sketch. 01/03/17
09:56
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Originally posted by Occam Logic
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This thing is a long, long way from profitability and is burning cash at a rapid rate. It is getting minimal to nil support from investment advisors, which is where the bulk of FUM flows come from. Likewise it is not entrenched enough to effectively market direct to the public, so FUM growth from that quarter will be slow. My professional view is that the property product is a flawed alternative to other unlisted property solutions out there for investors. The new bond product is not unique, so has minimal competitive advantage. Based on the HY report, their current burn rate would see them out of cash in under a year. DCL will struggle to raise equity following such a disastrous float. Lenders would be unlikely to touch them. Arthur has admitted the banks are reluctant to finance the property projects (quoted in the AFR recently), they are certainly not going to fund DCL happily. Arthur approached me to try and get me to recommend the property product to our client base about 2 years ago. I declined both times and he went off in a huff. I looked at the float and it did not come close to passing the sniff test for me.
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Than you Occam Logic,
(20min delay)
