Diploma Share Discussion Threads

[jeffian] 13/11/2006 10:43

I feel there must be an element of 'buy-the-trading-statement-sell-the-results' in the initial reaction to to this morning's results. As soon as I saw the words 'caution' in relation to N American growth and 'more modest' in relation to organic growth, I knew we were in for an initial mark-down but, hopefully, on more mature reflection, the market will continue to appreciate the strengths of this company. Priced on a modest, below-market-average, PER of 13 with a divi yield close to 3%, cash-generative, with a rock-solid balance sheet stuffed with cash, ongoing growth in the core business and new acquisitions yet to be reflected in the P&L account - for a 'fundamental' investor such as myself, this rings all the right bells.

Regards, Ian

[silverfern] 03/11/2006 08:46

well I won't ask how or why but having just got to that age I can report that worthless stock options, the dot com bubble and a bit of work have not allowed me that choice : )

[jeffian] 02/11/2006 23:31

silverfern, I did retire early in 1998 (when I was 47)!

Regards, Ian

[silverfern] 02/11/2006 19:47

Ian, you've made 6% in a week; do it every week for a year and you can retire early and sell me your formula for success.

[jeffian] 27/10/2006 19:01

......and it worked too, as I was able to pick up a few today at 790. Fank u, em ems!

8-)

Now all I've got to do is wait 'til next week to see whether I've caught a bargain or a falling knife!

Regards, Ian

[silverfern] 27/10/2006 13:51

So the verbally challenged among us can buy some shares (post 47). It's not the most liquid of markets; you need to look at the longer-term pattern

[eire voyager] 27/10/2006 12:32

Anyone any idea ehy the sudden drop in share price?

[jeffian] 16/10/2006 10:58

Deer MM's,

Plees wood u reduce the prise as I wood lyk too by sum?

8-)

[silverfern] 11/10/2006 16:22

It looks a very good buy because DPLM are in the business of adding value to these acquisitions and it's been a while since they bought. Wouldn't surprise me to see this turn into much more than £1,2m a year very quickly. WE also have had There may also be land that comes with this that can be disposed of, though they show net assets at 0.25m only

[stemis] 11/10/2006 08:48

DIPLOMA ACQUIRES CBISS LIMITED
FOR A MAXIMUM OF £6.0m

Operating profit before tax for the CBISS group (including EIM (Northern)Limited) in the year ended 31 July 2006 was £1.2m on sales of £6.2m. Consolidated gross assets at 31 July 2006 were £4.0m, including net cash of approximately £0.9m.

The initial cash consideration to be paid, which will be met from the Group's existing cash resources, is £5.25m, before acquisition costs. This may be subject to an adjustment up to a maximum of £0.25m, based on the net assets at completion. Further deferred consideration up to a maximum of £0.5m will be payable, depending on the operating profits of CBISS in each of the years ending 30 September 2007 and 2008.

So what appears to be a net upfront cash outlay of £4.35m for £1.2m operating profit. Should add 5% to next years PBT.

[silverfern] 05/10/2006 09:02

THe word's out..again! LEt's hope it stays out

[silverfern] 27/9/2006 21:35

I sold in MAy, but because of the overall market correction. I'm amazed this has bobbled around the 700s since - I bought in today also.

[stemis] 27/9/2006 17:32

Looks good to me and I bought in today. If it drops I'll buy more.

Strip out cash and its on little more than 10 x earnings. For a company with Diploma's growth record that is very mean. With the cash they have, they could certainly afford to increase the dividend to 25p a year.

[tole] 27/9/2006 16:01

Diploma DPLM 27-Sep Altium Capital Buy 770.00p 860.00p - Reiteration
Diploma DPLM 27-Sep Panmure Gordon Buy 770.00p 945.00p 1,035.00p Reiteration

[iandippie] 27/9/2006 09:28

If you look at the RNS history from DPLM, you will see that they released a similar update last year, but the price dropped 10% shortly afterward! It then climbed strongly a couple of weeks before results and continued after for a few weeks. Persnonally, I will monitor this one and try and buy on a dip to 700 over the next month or so, If that doesn't happen, then I will have missed the boat, but judging by todays muted response from punters, it may well dip yet.

[silverfern] 27/9/2006 09:12

it's a buy alright

[sahara] 23/9/2006 11:25

Been flagged up on my screening software as a buy.

looking at the chart we are triangulating and it may be prudish of me to nip in while we are at the bottom end of the triangle, as opposed to waiting for the breakout of the triangle.

Depending on the general market mood I will look to buy this week with a tight stop below 700p.

S.

[silverfern] 19/5/2006 18:36

well,nobody knew on 8 MAy about the selloff over the 11 days since. I sold at 810p or something - the div of 8p became rather irrelevant but today is ex-div day. THat was a market decision not a decision based on the company's results. Once the dust has settled I will buy again because it's a steal at these prices

[scumdog] 19/5/2006 17:20

Yes, but have to be patient and get in at a good price.

[bcf203] 19/5/2006 17:15

Down by over £1 after results. Very strange as strong position and good cash flow. Must be buying opportunity IMHO.

[silverfern] 08/5/2006 08:04

Great results . Happy to hold for 1000p +. All you Xmas buyers - are you here or am I on my own - it's now up 60p

Panmure Gordon says buy; target price to 945p

[silverfern] 24/4/2006 17:37

watch this fly on results - my estimate (h/yr 05)
profit £8.8m (7.54) eps 23p (20p) div 8p (7p) Why? Because the N American businesses are FLYING! and that is not in the price. Oh, and there will be an exceptional profit inr egard to the £11m disposal of land - not sure how muchis straight to profit line but MOST. As Tole's report shows they have more land to flog at nearly 100% to the bottom line. This is still way undervalued dontcha think?

[tole] 16/2/2006 17:13

Looking like an imminent breakout...