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Dye & Durham Ltd T.DND

Alternate Symbol(s):  DYNDF

Dye & Durham Limited is a Canada-based provider of practice management solutions. The Company offers cloud-based software and technology solutions designed to improve efficiency and increase productivity for legal and business professionals. The Company provides critical workflow software and information services, which clients use to manage their process, information and regulatory requirements. The Company has three geographic segments, being Canada, United Kingdom and Ireland, and Australia. Its solutions include practice management, data insights and due diligence and payment infrastructure. It has operations in Canada, the United Kingdom, Ireland, Australia and South Africa. The Company serves a large customer base of over 60,000 legal firms, financial service institutions and government organizations. Its subsidiaries include Dye & Durham Corporation, Dye & Durham (UK) Limited, Dye & Durham (UK) Holdings Limited, Dye & Durham Australia Pty Limited and GlobalX Information Pty Ltd.


TSX:DND - Post by User

Comment by AlwaysLong683on Jan 27, 2022 11:14pm
179 Views
Post# 34369786

RE:RE:Class-action suit looms as fee hikes anger lawyers

RE:RE:Class-action suit looms as fee hikes anger lawyersI am not a lawyer, but I am also not a fan of investing in companies that abuse client relationships by, in this instance, taking advantage of good software they acquire from another firm that built those programs by announcing extreme / obscene price increases to those products shortly after acquiring said firm, likely because they believe clients will have no alternative in which to turn and / or are betting extra money they make from those clients who stay will more than offset those who leave.

However, what DND may have miscalculated when giving the green light to this move is, the more you charge for your product, the more opportunity others see to create a competitive alternative that does the job and still be profitable by offering those services at prices significantly less than DND's new and now outrageous software pricing. Combine this with the likely loss of goodwill among DND's clients and chatter among lawyers to avoid DND and you increase the probability of future events turning very badly for DND - once you lose the respect / loyalty of clients who move on to alternative platforms, it's hard to lure them back or obtain new clients unless you back down, drop your prices, and show the legal community that, much like Ebenezer Scrooge, you've changed.

I owned shares in DND briefly about a year ago, but (thankfullly) sold after DND abruptly cancelled a second quarter conference call scheduled for February 16, 2021 less than one hour before its start time, giving the extremely suspect excuse that the cancellation was ".....due to its earlier announcement this morning of a $500 million bought deal offering of common shares and convertible debentures". I know of no securities law that states a publicly-traded company may not conduct a quarterly conference call because of a bought deal offering they secured at that time, so I suspect there was another reason why they backed out of the call at literally the last minute and did not level with shareholders as to what that real reason was. They lost my trust and respect because of this, so I sold all my shares shortly thereafter and to this day, have not regretted that decision for one second. 

Best of luck to those legal and software minds who are putting in the effort to offer competing products to DND's offerings - hope you succeed in your endeavours!



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