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Diploma Share Discussion Threads
Showing 626 to 649 of 650 messages
|Organic constant currency revenues are higher than I expected. I would expect to see another couple of pennies added to eps estimates over the next few weeks.
Noted also the emphasis on further acquisitions.|
|Well the trading update seems ok. Admittedly the 'froth' is largely currency conversion gains due to weakness of £, but the underlying sales seem solid enough.|
|Don't know what's spooked this today, though it is prone to exaggerated moves on small volume. Trading update on Wednesday but I would have thought the weakness of the £ would be a positive for them?|
|Now on a 2017 PE of 21.8.Fancy news coming...takeover?|
|Not sure Diploma have that much to do with oil co's. Their 3 divisions are Life Sciences/Healthcare, Industrial Seals and Controls.|
|Maybe also improved market sentiment following the OPEC deal and subsequent improved prospects for US oil cos?|
|Well this is nice! Just £/$ or more to it?|
|jeffian - Another plus is their US operations which now the pound has dived gives them an edge. I can't see the pound strengthening anytime soon. Picked up a few prior to ex/div wait and see now :-)|
|I've held them for years. Boring I like! I bought them as a low PER/high dividend share many years ago, although they're much more highly rated now so I've had both great income and good capital appreciation. A win/win. Also like the fact that they throw off cash and have little or no borrowings, even after acquisitions.|
|Don't think they have that many private investors Jeffian - probably think it's too boring but that's fine by me.
Good to see the organic growth tick up to 3% from the 2% in their pre-close, the return to net cash should be helpful for acquisitions too. Then there's the reference to US infrastructure spending and a potential upturn in seals if there's an OPEC deal.
Finally, they've only had 3 months benefit of the lower exchange rate so far. Overall there's quite a lot to go for when I think about it at the moment.|
|Solid results. Obviously not a well-followed company!|
|Nice new high. I get the impression it's not a very liquid share as price movements seem quite dramatic on relatively little volume.|
|Sterling collapse should give nice boost to earnings here|
|Somewhat surprised to see today's reaction to the acquisition, looks pretty good to me - undertaken at a PE of just over 7 and a chance to use the existing business to help drive up income and reduce costs plus at less than half a year's earnings plenty of scope to buy other businesses as they come up.|
|Wouldn't surprise me - it has typically performed well when the pound is weak against the dollar.|
|Yes, pleasing share price recovery. I wonder if it's related to recent weakness of sterling? I've noticed other $-related companies' share prices coming up too. Something like 75% of DPLM's revenues are in non-£ currencies and 'strength of £' is listed as a 'risk' in their accounts, thus 'weakness' has a correspondingly beneficial effect.|
|Interesting - I thought 760 would provide some resistance, I was wrong!|
|tong, you still watching here, TIA.|
|You're welcome EI. In this market climate I am also paying special heed to share price action (in addition to fundamentals) as there are plenty of reasons for the stock market to go down and making a few good companies much cheaper in the process. Opened up a couple of shorts a while back on sp500 and ftse100 just in case.|
|Appreciate the view tong, thanks.
I thought near £6 is worth consideration.|
|It's my own personalised valuation thing but here it goes: average FCF margin ( I work it out over the last 10 years) is about 8% (I don't usually prefer using trailing numbers due to business inevitable short term spikes). That means that I estimate sustainable FCF to amount to about £25mln (@8% margin relative to most recent sales numbers). That means the multiple (using latest a market cap reading) on such average FCF figure stands at about 30. For a company which is finding it tough to grow organically but is looking to acquisitions to do so, the multiple looks quite generous to me. I like the company a lot but I think I will exercise some patience before I decide to get back in|
|Way overvalued tong?|
|That's right EI - risk reward is not attractive yet. The company is still way overvalued in my view. In addition, market action not favourable: the share price has broken south of the 200day MA for a while now. Watching this closely as my gut feel is we will get a better entry point opportunity going forward.|
|Decent results but about in the price on 17X and not much growth atm?.|