UK 19:50 Wednesday, 23 September 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: The author has a short position in one or more of the shares mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
I reckon Dialight (DIA) is a grossly overvalued business. All I see is a business capitalised at £255 million, with little in the way of IP, and a dismal record of free cash flow generation. For example, on my calculations it achieved a free cash outflow of £4.6 million in 2013, as compared to a paltry free cash inflow of £2.5 million in 2012.
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Comments
REDBARON
New to ShareProphets so don’t know what you mean by “Here we go again”. I do know that the Institutions have been increasing their holdings which has to be a good omen. I have been following this company for years and while there is a certain logic to your findings I think the potential of this company is greater than currently realised. It’s fairly valued , pays a dividend and has a positive future. I can think of a lot worse companies to be holding.P/E ratings aren’t everything but I expect it fall over the next few years. Hope you have a realistic stop loss on your short, cause I can’t see you winning on this one.