Dialight Share Discussion Threads

[bbbbb] 01/8/2017 13:21

Suspect Erinsmore are at it again today...

[bbbbb] 28/7/2017 09:03

So it looks like the recent price drop may well be due to Erinsmore. Erinsmore are last folks with a disclosable short position on this stock after Blackrock et al. exited from disclosable positions after the turn-a-round started to gain traction.

IMHO etc, It looks like they have held a 2.31% position (about 750k shares which they took at a price in and around the £5 mark - so sitting on a loss of around £3-4M if I read it correctly). My expectation was they would start to unwind this after the recent solid set of results (with more to promised in 2018) however in the past couple of days it looks like they have deepened their position by approx 70k shares and 30k shares respectively. This is what I think has driven the drop.

This is a big gamble on their part and may present a buying opportunity.

It could get interesting if Dialight who are sitting on cash of £12.5m (likely to be closer to £20m by y/e) and a bank facility of £25m decide to do a buyback rather than (or along with dividend payments). They hinted that they were holding the cash for a reason and I thought perhaps an acquisition...but it could be a buyback I guess.

[bbbbb] 26/7/2017 17:46

I'd say the turn-a-round is underway and looking good. However, I'd liked to have seen more revenue growth in constant currency terms. they have said that they still have 3 of their large product lines to transfer to outsourced manufacturing and also that they have had some delays with certification on some of the new lines which has caused some customers to hold off on buying (as well as meaning some dual produciton costs). both issues they say should resolve before y/e.

I think 2018 is when we should start to reap the bigger benefits of lower cost and that is when the drive in sales revenue needs to come through.

What I don't understand is the share price reaction, some big volumes and a drop below £10 is a bit of a surprise to me.

[jeffian] 25/7/2017 14:32

Muted? It's up 2.5x in the past 18 months! With a PER still in the 30's, a lot of the recovery is in the price.

I sold at the last peak after years as a Roxboro shareholder and was very critical on here of the company's ability to burn through cash and report 'profits' by capitalising expenditure but, credit where it's due, they have turned it round and good to see it is cash-positive again. I wasn't brave enough to go back in at the bottom before the evidence of a turnaround was there, but well done to those who did.

[dangersimpson2] 25/7/2017 14:29

Makes sense thanks.

So Australia, Brazil & Asia 75% owned must be doing well. Scaling up the non-controlling interest then £1.2m of the £2.6m profit must come from there in H1.

[beeezzz] 25/7/2017 14:18

Well run company..results look positive, increasing revenue, however this should happen they are in a growth industry.

What's disappointing is page 28, where only one sector has increased by 2%, other Industries whatever that is, I suppose everything else other than stated, 3 declined.

SP is a bit muted...maybe looking better towards end of year.

[sharw] 25/7/2017 14:03

If you look at note 27 to last year's a/cs here:



you will see that there are 3 subsidiaries that are not 100% owned and that they made a fractional loss in 2015 and 2016. They are obviously doing better now, hence the figure you spotted. Because DIA controls them they have to be consolidated in the a/cs and then the minority interest deducted at the end.

[dangersimpson2] 25/7/2017 12:15

Does anyone know the source of the non-controlling interest that has appeared this half year? - can't see anything in the narrative but reduces EPS by c12% so worth understanding where it comes from.

[sharw] 25/7/2017 12:07

They are not alone - there are a dozen companies reporting interims to the end of June this morning including large ones such as DOM and SXS.

[chasbas] 25/7/2017 08:38

Half year results to 30 June reported yesterday. How/why can they do this after 24 days? Impressive?!

[sharw] 24/7/2017 15:30

Presentation slides now available here:



There is a summary of what was said:



Edit later in day - audiocast is now also available:

[bbbbb] 24/7/2017 08:09

Note from n+1..

Dialight’s shares have tracked broadly sideways in a rough range of 1000p – 1100p since the FY16 results at the end of February. While these results look good, we don’t expect estimates to change significantly. Management continues to execute well on the strategy, with the transformation to a scalable model largely complete amid pleasing strength in cash-flow and a decline in non-underlying costs. We would expect the shares to at least maintain their recent trading range and in time break out as order intake growth accelerates.

[bbbbb] 24/7/2017 07:40

Decent looking set of numbers this morning. Benefitted from currency movements as expected. Happy to see revenue increases in lightning. Some delays in manufacturing shift which look to have added £1m+ to costs..though should complete this year. No plan for divi despite growing cash...hint at acquisitions, perhaps this is the reason.
Overall I'd say 7 out of 10..but still headed in right direction.

[cottlet] 21/7/2017 11:10

at this point I see a share split.....

[bbbbb] 19/7/2017 13:55

Added to my core holding today at 1020.

1st half results due on Monday 24th July and I'm optimistic that these will be decent.

I expect the financials to be a touch ahead of plan and I'd like some comment on the restoration of dividend which will demonstrate confidence in the turn-a-round plan which didn't come last time. The key for me however will be the revenue numbers which, with the manufacturing rengineering behind us, will point toward how the sales restructuring changes are impacting. It's still early in that phase however I'm hoping for an improvement on the 1H16 numbers.

[beeezzz] 03/7/2017 11:00

Great achievement for Dialight well done...

[dangersimpson2] 16/5/2017 12:41

Given the matching volumes and mid price the 37.5k looks like some kind of rollover.

The 120k looks like a sell arranged off-market at the mid price between 4 buyers of 30k each.

[beeezzz] 16/5/2017 11:27

Massive trades going through....is there a takeover coming hmmm

[beeezzz] 09/5/2017 17:43

Nice rise today....back above 10 quid...nice

[bbbbb] 26/4/2017 16:53

Just checked...'Demand for our market-leading products within the Lighting segment remained in line with management expectations.'

[bbbbb] 24/4/2017 16:59

I would have expected a trading statement/update at the AGM on the 20th but I've not heard anything...have I missed it or was there none?

[bountyhunter] 22/4/2017 17:33

stuck oscillating around 1000 for now; looking at the medium term chart the pattern over the past year has been upwards, consolidate, repeat!

[beeezzz] 19/4/2017 11:47

Interesting analysis :

[tompion] 30/3/2017 17:36

I only sold DIA as it reached my target of 1000p and, more importantly, as it doesn't give a divi and, as an oldie, I now hold only high-yielding stocks long-term for divis. I still have confidence in DIA now that their problems seem overcome.

[sharw] 30/3/2017 13:35

beeezzz - that is old news - transaction date 3/3 and was not taking profits but a part sale of exercised options to cover the tax: