DNK - Phoenix Tree: Unlikely To Rise From The Ashes

• Phoenix Tree Holdings, better known as Danke Apartment, has been in the news for the wrong reasons in the past month.
• Although the stock has been on a downtrend since July, the valuation is still too rich for the deteriorating circumstances it is in.
• Speculations of a white knight are keeping shareholders' hopes alive.
• However, existing shareholders' interests are expected to be heavily diluted in the event of a rescue.
• Worse, the company could fail to find new investors and is also unable to secure needed financing from the banks.

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