11-02-2008, 06:26 PM | #1 |
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Dinan being sold ?
Just as I had compiled all the arguments for having Dinan tune my X50i (I live about 30 miles from their Morgan Hill location) , I was doing some unrelated research and came across an item about Dinan being sold. Anyone know anything about this ?
http://biz.yahoo.com/prnews/080829/to353.html?.v=43
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Last edited by dmlgc; 11-05-2008 at 04:32 PM.. Reason: data correction |
11-02-2008, 06:41 PM | #2 |
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going public -> http://www.dinancars.com/bmw/press
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11-03-2008, 08:48 AM | #3 |
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Wow, that's bizarre. In their IPO prospectus they give themselves a "deemed value" of $26.7M, yet they lost $1.1M in 2007 on revenues of $9.2M, and they lost $162K in the first six months of 2008 on revenues of $7.1M. As of June 30 of this year they had a negative net worth of $1.4M. Although revenues are increasing, this does not strike me as a well-managed company. For a company that has been in business since 1979, those results are terrible!
Their "IPO" is actually a reverse takeover of a shell public company on the Toronto Venture Exchange. These are common transactions in the oil business here in Calgary, but have a reputation that is somewhat less than stellar. It puts a rather different complexion on the value of Dinan's BMW-quality warranties. Hard to get money out of a company that is bleeding. |
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11-03-2008, 06:05 PM | #4 | |
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11-05-2008, 04:45 PM | #5 | |
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I'm use to the traditional US style of file the S1, get investment bank signed up to underwrite it then go. I guess the terminology/method is different in Canada ? Of course I guess right now it looks like the Canadian economy is doing better than the states so maybe this was a good approach.
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11-06-2008, 09:03 AM | #6 | |
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I question why they are going public. Does Steve Dinan want to cash out? (That's what I suspect, and if so that's a lousy reason for anybody else to put money in.) Do they need cash for some big R&D program? (Doubtful.) Do they just think that going public will help them suddenly increase sales? (Unlikely, but naive if true.) Anyway, I doubt that in the current financial climate they will even go ahead with the 'IPO' for a while. |
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11-06-2008, 05:06 PM | #8 | |
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11-06-2008, 08:42 PM | #9 | |
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