Evil Diaries: The Gabfest Continues

2 mins. to read
Evil Diaries: The Gabfest Continues

A few days ago, Victor Hill, my Master Investor colleague and arguably one of the best financial writers in the country, who majors on big caps as part of illustrating his macro thesis, mentioned a small cap, DGI9. I did not understand it since the argument for buying revolves around what view one takes of the insane discounting to net asset value that generally obtains in London. I put aside his comments.

However, a few days later, my contact, Barnaby, whose judgement I respect, comes on strong with exactly the same highlighted situation. DGI9 are now circa 18p to buy. But although there has clearly been some exposure going on here for some time I suspect that in due course there is rather more to come. Perhaps tuck into some.


Last week, Simon Thompson of the IC went through his list of investments for 2024, majoring on Benjamin Graham-determined attractions. I went for Naked Wine (WINE) and paid 71p. I also mentioned it to my chum who with his brother had first invested in Majestic Wine, the principal antecedent of WINE, about forty-five years ago. They made millions. Even when the CEO had set about a grossly exaggerated belief in his knowledge of the Californian booze belief, it did not matter. My men had seen what was coming and had sold out. After the inevitable insolvency, my men bought back in. How cool is that?

But my chum declares that although Simon Thompson is very confident about WINE’s current iteration it has yet to show maintainable success in online marketing of wine (for it is into that which WINE has devolved). We’ll see. Given that I for many years have assessed Simon Thompson as sound I shall be disappointed. As he represents matters, WINE is cheap.


The tutorials covering investment continue. I vary these according to the circumstances of those who attend and I find that people like these variations. The only missing aspect in practice is that, so far, no woman has elected to come along. Accordingly, if this lady would care to attend I am sure we can knock off 10% and also invite her to bring along whomever she wishes. We serve chocolate cream eclairs and/or dark chocolate cake with lashings of double cream. As before, my email address of the last thirty+ years remains cawkwell@btinternet.com.

Incidentally, although I am offering a gabfest it is only reasonable to mention that it is also a gourmetfest in that I serve a first class dry champagne, which, I am told by the merchants, is also served by the British embassy in Paris.

Comments (1)

  • Stephen Tye says:

    DGI9 is an interesting one. It has assets of £1,157m as follows: Aqua comm £253m; Verne global £498m; Elio £58m; Arquiva £348m. It also has gross debt of £554m of which a £375m RCF needs to be refinanced in 2025 leading to a fundamental uncertainty of going concern. So net assets are £603m. Shares 838m = 72p assets per share if value received (not a fire sale).

    Company has over-extended itself, and does not have the income or cash reserves to meet future capex so has decided to wind itself up. The initial sale of Verne Global agreed for $575m (£456m) to Ardian France, which is around the reported nav but the Icelandic anti-trust authorities have opened an anti-trust enquiry putting the sale on hold for c 100 days from 8.2.24, causing shares to tank.

    Bargain, or falling knife?

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