Diploma Share Discussion Threads

[quantumx] 24/1/2005 14:25

Are we seeing the start of another run-up for Diploma, the dividends are out of the way and they seem to have a lot further to go.

[silverfern] 18/1/2005 19:00

For the last two years Diploma has declared exceptional items to boost profits. You have to ask when does exceptional become routine Here is an item from their annual report and I suggest you right now add £4m to the bottom line for 2005, and add to your current holding or please advise me what I am missing. "At 30 September 2004 the market value of the Stamford land, in its present condition, is estimated to be not less than #5.5m before expenses and taxation, compared with a net book value of #0.1m."

[charlie100] 21/12/2004 08:27

What I like about this stock, is that it appears to have so far attracted very little, in the way of hot money.

36 posts since December 2002, is clear evidence of this.

In addition the story seems to be great, cheap, and cash in the balance sheet.

What more can you ask for.

Well you could ask yourselve is the recent strengh, leading to something?

[silverfern] 20/12/2004 17:05

Q-X: well, your own comments on this thread pretty much evidence the reasons the price is rising. It's what shares do when the company is doing well. WHy wouldn't the price rise to 900p on the sustained growth model they have?

[quantumx] 20/12/2004 13:04

Anyone know why DPLM is surging ahead at the moment?

[samg99] 10/12/2004 10:03

silverfern - many thanks; most interesting. These share mags are obviously written by dunces in the main - after all, if they were any good at investing/trading, why would they be having to scratch a living working on a share mag? ;-)

[silverfern] 10/12/2004 08:52

LAst issue - small cap results - comment 'results not as strong as first thought" due to exceptional profit from land sales. Cash half that of last year, cash flow has fallen. Fact they made acquisitions also noted however - fairly valued

The magazine is not right because 2003 profit also inc'd exceptional items "After excluding exceptional items and goodwill amortisation, profit before tax increased by 24% to #13.1m (2003: #10.6m)." is the like for like comparison. ANd they have £17m cash so not exactly in the position I'll find myself in this month!

2004 acquiisitions now bedded in and the charge was made last month for the cost of this - so expect those companies to now grow profits. This company has a forward p/e of around 10 and a growth rate of 20% and a portfolio diverse enough to be safe. I mean, what more do they want!?

[samg99] 09/12/2004 23:11

silverfern - when did they have the bad press in Shares mag? Recently? Sorry, never read it (or the Chronic Investor for that matter).

[silverfern] 09/12/2004 22:06

"Sadly" - like when? I never did get my bargain price, sadly. This is a cracking company - they even survived bad press in Shares mag (sorry to give them the publicity). Shuisky is more inforamtive than me.

[quantumx] 06/12/2004 17:13

Nice to see this one break out from 600p and move up some more, very little volume sees rapid movement with this share (sadly, either way!)

[silverfern] 17/11/2004 08:30

I like the 750p target - seems undemendaing, and I like the fall this morning. I will buy a load more if it gets to 540-50p again

[shuisky] 17/11/2004 01:44

It's 'Worth a buy'. The shares may be on a forecast earnings of 12, but there is 17.9 m or 13.6% of the market cap in cash on the balance sheet. With DPLM's acquisition track record it's easy to see this buying, say 6.5p of EPS. There is also land being prepared for sale estimated at 5.5m

The cash flow generation is very impressive. With FCFY at 5.6/131.9=4.2%, but if you adjust to make working capital neutral its 5.6+4.7/131.92=7.8% That's hugely impressive for a business whose three business segments are all capable of generating growth throughout the business cycle. I thought the results were impressive, because they demonstrated the success of the recent acquisitions.

A, very rough, stab at an evaluation might strip out the 5.5m land from the evaluation and add in say 6.5p from a hopeful acquisition. Putting DPLM on a current PER=11.7 Distributors don't tend to trade on high PE's, but even if you target a PER of say 13.5, this can appreciate at least 15% from here, provided they continue their acquisition history.

All of which is ignoring the EPS growth prospects implicit in full year contributions from the previously acquired business' and margin improvements from cost savings. IMHO, there is significant upside potential here.

[britishb] 16/11/2004 12:59

In the Torygraph today, Questor...

"Diploma is doing the right things and still looks cheap beside its peers. Rising 3.5 to 582.25p yesterday, the shares are on 12 times forecast earnings with a 3.4pc yield. Worth a look."

[silverfern] 15/11/2004 12:34

Agreed. Some press would now help push this one higher

[britishb] 15/11/2004 12:31

Yep excellent results beating forcasts comfortably. Not screamingly cheap but eps forecast at 47p this coming year for a PE of just 12. This for a well run, cash generative company, excellent management, 20% ROCE, growing divis and still lashings of net cash on the balance sheet.

[quantumx] 15/11/2004 10:42

I'm happy with the results. Divi up 12 %, beat inflation. Nice.

[silverfern] 10/11/2004 09:04

I added a few yesterday.

[shuisky] 17/10/2004 23:35

Yes, but he's also encouraging a host of suggestible punters into the stock. This will prove troublesome if this stock starts declining. Why? Because all those punters will then sell this and buy the next tipped stock.

Did anyone spot the sustained selling on Friday? Looks like someone has used the opportunity to reduce a position. Media tips are rarely good for anyting but a short term spike. Results should be out in November, so hopefully we will see more margin improvements and an update on the potential land sale.

[quantumx] 13/10/2004 09:53

I'm happy with another 25%, I think Alpesh is taking a fairly safe bet.

[silverfern] 12/10/2004 22:43

Tell him 'thanks, but we know'

[dtx] 10/10/2004 16:57

Alpesh Patel has tipped DPLM as share to watch in the small caps in the Barcklays (Schwab) newsletter. Price target of 750p in 12 months

[topstar] 03/10/2004 03:35

Hey, I heard that. (Holding Diploma)

[shuisky] 17/9/2004 14:18

This is a great little board. Nicely and quietly watching this star ascending, whilst elsewhere, the mug punters go around ramping the latest rubbish. Let's keep this gem quietly to ourselves..... Shhhhhhhhhhhhh

[quantumx] 16/9/2004 12:38

I suspect the MMs may have been trying to flush out shares for an institutional buyer by hiking the price yesterday. Time will tell.