Diploma Share Discussion Threads

[essentialinvestor] 13/12/2011 18:29

So many appear to think there is a pot of gold awaiting for them in
the China market, the reverse is often the case.

[silverfern] 13/12/2011 18:08

I'm sure that is right- this is an investment in a business, not a take-over. We'll buy your US arm now invest it in the Chinese business and grow it.

[jeffian] 13/12/2011 11:29

Hi, silverfern,

"...it gets a foot into CHina..."

Well less of a foot; more like an inch! (10% holding)

Interesting that they didn't swallow up the whole lot leaving Mr R Vroom and Mrs S Xiao with 90% of the Chinese business. I assume the plan is to leave the entrepreneurial founders to build up the Chinese end without risk/expense to Diploma then buy them out if it works?

[silverfern] 13/12/2011 07:50

A small outlay but it gets a foot into CHina and is immediately earnings enhancing. Looks good to me

[sleepy] 02/12/2011 23:35

Jeffan - thank you for your reply. We seem to have an interest in the same sort of companies! If you could buy this company with a good chunk of debt I don't think you need synergies to make it a good deal

[sleepy] 02/12/2011 23:35

Jeffan - thank you for your reply. We seem to have an interest in the same sort of companies! If you could buy this company with a good chunk of debt I don't think you need synergies to make it a good deal

[jeffian] 02/12/2011 23:31

Yes, but I can't think of a company in the same sector where there would be synergies and the other usual reasons for takeovers. Since conglomerates like Tomkins went out of fashion, there hasn't been a case for buying (unrelated) companies just on the grounds that they are 'cheap' (unless you count Private Equity, in which case you probably ARE selling too cheap!).

[sleepy] 02/12/2011 22:57

jeffian - you may very well be right. But it's a super company, super margins, super profits and could be steal for anyone who could finance its acquisition with a good chunk of debt.

[jeffian] 02/12/2011 19:57

Yes, it was in the Telegraph market report too. The thing is, the Alphaville boys didn't actually know what Diploma do and their suggestion for bidders was Hamworthy or Charter (both engineers). I don't see it myself.

[sailing john] 02/12/2011 19:04

Mentioned as a rumour on FT Alphaville yesterday
SJ

[sandmarr] 02/12/2011 19:01

What takeover story?

[sleepy] 01/12/2011 20:04

Anyone know anything about the takeover story?

[silverfern] 01/12/2011 19:26

jeffian has been in it a long while - I have been in and out of this one for ten years. They have VERY good management and they know what they are doing- bought in around 315 mark earlier this year and expect to stay put .

[essentialinvestor] 23/11/2011 17:52

lol Intercare is going back to my early days.
Stock picking seemed far more simple back then,
very tough year.

[jeffian] 23/11/2011 17:44

EI,
Their argument is that they are not 'just distributors' but provide levels of customer service that cannot be easily replicated "...by supplying essential solutions, not just products, we are able to sustain attractive margins by delivering real value to our customers and suppliers". If you're buying electrical harnesses or KERS systems for FI cars, you can't say 'forget it; I'll pop down to Maplins and get it cheaper'!

I've been in this for a few years and it's done rather well. I was also in Intercare. You stalking me?! (or vice versa!)

[essentialinvestor] 23/11/2011 17:31

I have only ever bought one ditribution company, Intercare back in the day,
may just be tempted here.

Being honest I do not quite get how the margins are so good as
distribution is usually under continual margin preasure from both end
users and suppliers - will have a closer look.

[gco1133a] 21/11/2011 12:43

This is looking very cheap given the record and the prospects. Current year PE must be in single digits.

[jeffian] 21/11/2011 11:59

Nice results, as anticipated, though on a bad day in the market. On a PER of 10.75x (eps adjusted for one-off acquisition costs) this is not expensive for a company with continuing growth prospects. Nice 4% divi, too, which is better than money in the bank.

[typo56] 13/10/2011 18:34

DPLM enters the FTSE250 tomorrow (hence the high volume tonight)

[silverfern] 12/10/2011 21:09

Double page article in Shares magazine last Thursday - very interesting (I don't have access to it)

[silverfern] 27/9/2011 19:23

I agree - I bought on the dip expecting fair value to be around 400p but as you say it's still expanding and acquisitions come cheap at present

[jeffian] 27/9/2011 09:46

Very good trading update today. Looking at analysts' estimates on Yahoo, "the top end of market expectations" seems to be around 27p/share putting them on a PER of 11.66x. Not expensive for a company showing such good growth in difficult times.

[silverfern] 10/8/2011 09:24

the management are always cautious yet deliver year on year - current price represents good value imho. Took adfvantage of the recent falls to buy back in for the first time in two years

[quickmind] 06/8/2011 15:25

... the Group is confident of delivering "GDP-plus" levels of underlying revenue growth. - "GDP-plus" is rather unambitious!

[gco1133a] 01/8/2011 12:49

Very strong statement today.