At around 950p less than a year ago, I concluded that shares in Dialight plc (DIA) looked “overvalued. And then some.” (see HERE). I then updated in April, at 755p, on an AGM trading update I considered more misleading than informing (see HERE). I now update with the shares currently down more than 30% on the day at around 500p.
Despite updating that “demand for our market-leading products within the Lighting segment remained strong and group revenue growth for the quarter exceeded management expectations”, shares in Dialight plc (DIA) currently trade more than 5% lower today, at 755p. The following reviews why…
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.
Shares in applied LED technology company Dialight plc (DIA) continue to trade well below the 1400p September 2013 highs, but at around 950p have also recovered meaningfully from the 700p levels to which they were reduced on an early 2014 profits warning. After the results announced last week, I take a look at the figures for the first half of 2014.
Producer of retro-fittable lighting fixtures applying leading edge LED technology, Dialight (DIA) has updated that trading in 2014 to date “has been in line with the board's expectations” and that “despite currency headwinds from the translation of US results, the outlook for the group for the current year remains unchanged”. I provide the following update, with the shares having nudged ahead to a current 940p – compared to almost 1400p reached in September, and well ahead of the 700p hit in January.
Following its announcement yesterday of results for the 2013 calendar year, shares in Dialight plc (DIA), which produces retro-fittable LED lighting fixtures designed specifically for hazardous locations, obstruction signals and traffic signalling, closed slightly higher at 779p. The following details that brokers remain positive but also some financial trends which temper my enthusiasm.
Dialight plc (DIA), the LED technology specialist, has announced results for the 2013 calendar year, which show “profit at a level that was lower than expectations”. It goes on to say it “expects to drive strong Lighting growth for 2014 and the years to come. This, combined with a stabilization of the Signals business leads the board to expect a return to earnings growth in 2014”. The shares now trade a few percent lower at 750p.
Congratulations to Tom Winnifrith, the dark destroyer Matt Earl and Lucian Miers who called this one bang on the money as a sell at 1200p on this website. Fundamentalists do it it right now and again.
Having updated last week that it “expect(s) underlying profit before tax from continuing operations to be broadly in line with the prior year”, LED technology-applying company Dialight plc (DIA) has this week announced director share purchases of £99,461 and £90,000 at 915p per share and 900p per share respectively. Do these look like ‘bravado buys’ or something more?
Bear raider Evil Knievil started shorting LED Company Dialight (DIA) at 1200p three weeks ago and I wrote at the time that I agreed 100% with his analysis. The stock has opened down 33p at 1033p today after a less than impressive trading statement. Evil says he is “delighted”. We both expect the shares to slump to 600p in due course. Here’s why.
Top forensic analyst Matt Earl has gone short of Dialight (DIA) and plunged the knife into the company with a withering attack. Earl was the man who called Connaught down to nil when all other analysts said buy and who has produced outstanding analysis on the woes of Avanti Communications (AVN). His Dialight report is a classic.
Bear raider Evil Knievil and I have had a long chat this morning about Dialight (DIA) of which he is short. The core analysis here comes from Matt Earl – the nemesis of Avanti (AVN) who has got to be the UK’s top forensic analyst and has just signed up to the UK Investor show as a star speaker.
Shares in leading-edge producer of LED lighting fixtures for hazardous locations, obstruction lighting, traffic and rail signalling and general industrial application, Dialight plc (DIA) currently trade around 14% lower on the day on the back of the company now not expecting some significant 'obstruction system' business to be awarded in time to sufficiently impact the current financial year…
FTSE-250 leading-edge LED technology utilising producer of lighting fixtures for hazardous locations, obstruction lighting, traffic and rail signalling and general industrial application, Dialight plc (DIA) has announced a maiden, initially “just less than $1 million”, order for its new Cellphone Tower Remote Monitoring and Lighting system “from a major operator in North America”. Post my review of the company’s interim results last month (see HERE), the following updates…
FTSE-250 LED technology (to reduce industrial maintenance, save energy, improve safety and ease disposal) company, Dialight (DIA) has announced a first half of 2013 underlying pre-tax profit from continuing operations of £5.4 million on revenue 12.8% higher than in the comparative prior year period, at £59.9 million, generating underlying basic earnings per share of 11.6p, down from 17.3p... Consensus estimates for the full-year were for earnings per share (2012: 41.7p) of more than 51p – which looks a big ask given the half-year performance...
Following a trading update in April I commented that FTSE-250 constituent Dialight plc (DIA) was a high quality business but that ‘the high price-earnings multiple means that the shares are currently vulnerable to any even minor disappointment from the company or adverse change in stock market sentiment’. The shares then traded at approaching 1300p. On the back of a trading statement today, the shares currently trade approaching 13.5% lower on the day at 1158p.
Dialight plc (DIA) has for a while been a favourite of star fund manager Mark Slater and the shares have proved a hugely rewarding investment over recent years – up from little more than 100p in early 2009, sub 700p at the start of 2012 and just over 1000p in some of the early days of 2013 to a current almost 1300p.
Dialight plc (DIA), a FTSE 250 constituent focused on solid state lighting technology for industrial application, traffic and obstruction signals and components for status indication and residual disconnect components for automotive and niche industrial application, last week announced results for the 2012 calendar year. These have helped the shares – up from only just over 100p late 2008 lows – further higher; from a 1,165p close prior to the results announcement to a current 1,300p. Capitalising the company at approaching £418 million, the following reviews the results and the value on offer here…
