Dialight Share Discussion Threads

[pjml] 23/5/2016 13:34

Dialight are moving there production to Mexico and shutting there site in England in Newmarket at around the end of September, but the problem is Mexico work is always requires rework

[dangersimpson2] 23/5/2016 13:28

Sadly I have no great insight into the short term movements of the share price.

What I will say is that if you view the last 6 years results on the Stockopedia StockReport and ignore the share price movements you see a company that has managed to generate modest revenue growth and pretty much no profit growth even if you exclude the bad 2015/2016 years as anomalies.

Generally this means that the company is operating in increasingly competitive markets. They are not a consumer business but one only has to look at the LED lights available on Amazon from Chinese manufacturers to know that the Dialight product itself has little to no sustainable competitive advantage beyond their distribution networks. That their turnaround plan is essentially cost saving and manufacturing efficiency tells you that this is now a low margin sector and should be priced as such.

It is the classic case of the returns from new technology going to the consumers (& environment?) and not the companies creating the technology.

If they remain in the same sector with increasing sales but declining margins then something around the £2 would seem a reasonable fair value to me after the business has completed it's turnaround.

[pugugly] 23/5/2016 11:47

dangersimpson2:> You called right - Now some 10% down from time of your post - Still I suspect further to fall BUT there appears to be a largish buyer in the market picking up stock - however Fund Managers are not using their own money and th elarket of LED's is becoming very competitive - Increased pressure on margins as reported by Photonstar this morning - So any calls on how much further to fall - ??

[dangersimpson2] 26/4/2016 09:04

The board continues to target underlying EBIT growth for the Group's full year performance.

I agree it's almost impossible to get an accurate steer from that statement. The only thing we can do is to compare to FY15.

Underlying EBIT for 2015 was £6.1m. Given that they are only 'targeting' growth not 'confident' of it I would expect them to have a poor first half and only deliver a marginal increase for the full year. Say £6.5m. This would be a big miss on the 23p EPS 2016 consensus.

The 2015 results suggest they will have a minimum £12m of exceptional costs in 2016 so reported figures will be another loss and debt will increase to say £10m.

With the market cap at £182m they would be on a fwd underlying EV/EBIT of c.30x.

Given that a struggling company would normally trade on 6x EV/EBIT or less then based on today's trading statement the share price would seem to have a long way to drop to reflect current trading.

A recovery is forecast in 2017 but even then the company would be on a high mid-teens EV/EBIT multiple. How confident should we be of 2017 if they miss on a modest recovery in 2016?

[itchycrack] 26/4/2016 07:56

WTF! That has got to be the most pathetic trading update I've ever come across!!
Who runs this mickey mouse company! Unbelievable!
Surely its got to be a mistake, and an 'update' will be posted soon?

[pugugly] 26/4/2016 07:38

Trading update out - Total waste of time - Tells PI's nothing save that the Company is still alive - If Mr Market reads it the same way then should be good for a 20%+ FALL. But what do I know ?

[itchycrack] 14/4/2016 07:44

Watching closely, but playing out perfectly at the momemt... :-)

[beeezzz] 13/4/2016 17:42

AV...What has that to do with the price of Bread;

I see II's are still adding, Hmm watch that short Itchy

[albanyvillas] 08/4/2016 16:26

Kainos expands Polish business with office for 500 staff
By John Mulgrew
PUBLISHED
17/03/20160 COMMENTSSHARE
Kainos chief executive Brendan Mooney
Kainos chief executive Brendan Mooney
Software company Kainos is expanding its operations in Poland with a new office which could double its workforce there.
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The Belfast-based firm's new base in Poland can hold 500 staff, double the current number there.
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Kainos said the rapid growth in the volume of global projects has resulted in the expansion. The team will be working on a range of projects, including Kainos Evolve and Kainos Smart.
Co Antrim-born Brendan Mooney, chief executive of Kainos, added the expansion highlighted "not only the company's success in Poland to date, but also our ambition to remain as one of the most committed and attractive high-tech employers".
"Our Polish colleagues have consistently delivered high-quality, innovative work, and form an essential part of the company's growth plans," he said.
"Gdansk has proven to be a very fertile location for recruiting technical talent and expertise. We are consistently impressed by the calibre and enthusiasm of the graduates and experienced professionals we employ."
The announcement from Kainos comes as it revealed it was working with US health tech firm InTouch Health.
The pair will develop a series of products for the health industry, integrating Kainos' technologies to improve areas such as communication and the sharing of patient data.
In July last year, Kainos became one of just three Northern Ireland firms on the London Stock Exchange. During the first six months of trading as a listed company, the software firm achieved an impressive turnover figure of £37m.
It has grown staff numbers to 800 across its seven offices, with 440 of these working at the company's base in Belfast.
Kainos helps the healthcare industry and the Government digitise their work.
Brendan Mooney, who hails from just outside Dunloy, joined Kainos in 1989. At that time, it employed little more than a dozen staff.
Speaking about his company's partnership with InTouch Health, Mr Mooney said: "We believe that tele-medicine will transform the way in which healthcare is delivered.
"This partnership between InTouch Health and Kainos Evolve provides the right capability to support this transformation".
Dr Yulun Wang, chief executive at InTouch Health, added: "We are excited about working with Kainos Evolve.
"The flexibility and power of the Evolve platform, combined with the breadth of the InTouch customer base and solution offerings, has the potential to make a significant impact on the care of patients across the US and beyond."

[itchycrack] 29/3/2016 20:54

Layered in a few shorts today. Won't run much further before heading south IMHO.

[beeezzz] 23/3/2016 14:01

Odd or not...still shows 1500+ google, graph looks a bit odd also.

[beeezzz] 23/3/2016 12:14

Nice trade 1500 @859p WTF!!!!!

[beeezzz] 23/3/2016 11:12

Itchy.....starting to get a little twitchy; is that short going on or are you concerned this could blast off....Hmm

[napoleon 14th] 18/3/2016 13:30

Well, from a PI point of view looking at my PF, I'd admit what a pity I didn't think like CR!

[bountyhunter] 16/3/2016 17:33

...from that "They presently have a GBX 500 ($7.15) price objective on the stock" which is a bit odd given that the price today is comfortably above that and the article is dated today! ...Maybe took a while to publish.
Notably the other brokers have higher targets however.

[itchycrack] 11/3/2016 21:20

Beeezzz - I was out of my current short at 423p - just patiently waiting for a re-entry point, likley around 600p level.

[beeezzz] 11/3/2016 17:39

Looks like they turning this company around..great products good R&D best in class...nice rise too.

IC...watch that short looks a bit smelly.

[tompion] 08/3/2016 18:10

Thanks sharw

[sharw] 08/3/2016 17:00

This morning's presentation is available now at:



tompion - if you watch this you will find much on how the new management is organising the turnaround

[tompion] 08/3/2016 13:47

Staggered that DIA jumped over 10% yesterday and has only lost a small amount of that, given the results look poor and without much sign of a rapid turnaround.

[beeezzz] 08/3/2016 13:26

Nap 14th....

Yes I agree they have that policy, yet this is a small part of the led market. I agree it would help companies in UK, locally we have had LED street lighting fitted recently, none are Dialight, contractors use whatever makes them the most profit rather than using UK supplied products, its all about money, they still rip off local authorities, so they could get a better product at the same price if the useless civil servants did a little bit of research.

[napoleon 14th] 08/3/2016 12:57

beeezzz - If you want to supply the gov't (at ALL levels) in the US, you have to prove that the product is made in the US. It's our own fault for sheepishly following the ideology of "free market" when the others are not.
As the yanks would say " ideology sucks, strategy wins!"