where is dgr headed?, page-17

@Whatup: Appreciate your posts and input - thanks. And yes, I know the theory behind the way the company is supposed to work.

But only yesterday, our holdings in one of the other companies got diluted down from 41.5% to 13.97%. That's not adding shareholder value - that's destroying it.

Unfortunately, I can't see any prospect of DGR ever generating any returns. I think they will continue to sell down assets, and if one gets taken over, the money will be used simply to continue to pay the wages and bills. The shareholders will get none of it.

I've seen this before with other holding companies, or companies whose main modus operandi is to have large holdings in other companies, but not actually to do any mining, production, or whatever, themselves.

I bought into DGR at 4.5c, and it looks like heading back down there. So I was convinced by the story at the time, as well as by knowing that Nick Mather was the driving force, having done very nicely out of Arrow Energy.

But this is just looking more and more like a Ponzi scheme, where all the money raised from either the market or from selling shares from the holdings just gets used to pay those at the top.

As you can gather, my initial enthusiasm and belief in the company have completely worn off, and I have already sold out of 75% of the shares I had (all at a profit, but a much smaller one than it should have been). And I will be jumping ship re the rest of my shares as well - but it would be nice to see the share price have at least a small bump first. I'm well and truly free-carried, but the money could be doing something much more profitable elsewhere.

Thanks again for your posts :)