DIMO sudden interest

BenZ · 1 DIMO sudden interest Fri Apr 08, 2011 10:32 am

BenZ

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Anyone know a reason for today DIMO pick-up with well above average quantities traded so far ?

duke · 2 Re: DIMO sudden interest Fri Apr 08, 2011 10:49 am

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there was a crossing at 1500 yesterday

BenZ · 3 Re: DIMO sudden interest Fri Apr 08, 2011 10:51 am

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Thankx

Slstock · 4 Re: DIMO sudden interest Fri Apr 08, 2011 3:18 pm

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BenZ wrote:Anyone know a reason for today DIMO pick-up with well above average quantities traded so far ?

One stock broker recommend htis share as a buy and also a crossign was there

tubal · 5 Re: DIMO sudden interest Fri Apr 08, 2011 3:40 pm

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Monster is the resident expert on motors sector, since he hasn't commented yet. I will barge in.

Monster will probably tell you that DIMO has the lowest sector PE and that DIMO is not fully dependend on sellings mercs like many people seem to think. What I can tell you is that DIMO usually moves in large spikes and then stagnates for a while. The spikes are well before the interims are released (leak maybe?). DIMO is one of the last companies to release their interims in each quarter but the rally starts very early in the quarter. It usually lasts only for about 10 days so if you are going to buy, plan to get out soon. (note this is not a buy recommendation just an observation (you guys already know that Sloth Bears don't make buy recommendation)).

Light of Hope · 6 Re: DIMO sudden interest Fri Apr 08, 2011 4:32 pm

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DIMO is a good pick, once it was trading over 1800. They sell equipment used for agiculture and manufactoring like tractors and other equipment. They will have their share in this agriculture boom and will show good reslts again.

Slstock · 7 Re: DIMO sudden interest Fri Apr 08, 2011 4:58 pm

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Light of Hope wrote:DIMO is a good pick, once it was trading over 1800. They sell equipment used for agiculture and manufactoring like tractors and other equipment. They will have their share in this agriculture boom and will show good reslts again.

This is all true however the core business is still Motor sales. This is good undervalued counter and should do well in the medium term

Light of Hope · 8 Re: DIMO sudden interest Fri Apr 08, 2011 5:38 pm

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There is a buy recommendation for DIMO

http://colombostockwatch.com/2011/04/diesel-motor-engineering-plc/

Copied from above, some points

Based on the valuation above assuming an annual earnings growth of a minimum of 25% we expect the share to
appreciate to Rs.2014.63 by 31st March 2012 given the current profitability levels being maintained. In our view
we thus recommend DIMO as a „Buy‟.

The restoration of peace underpins greater optimism with respect to the national economy. These opportunities are
expected to be complemented by the ongoing global recovery. Political stability and the end of the war are bound
to have positive effects on commercial activity, driving economic growth and demand for their highly valued
products. The core business makes up a large part of its revenues. DIMO will continue to grow its core business,
the importation and sale of a wide variety of vehicles and vehicle accessories for the domestic market. This is
where the company has made a mark for itself and intends to grow its stature and market share. The company also
intends to pursue its diversification policy progressively moving into several new areas such as building
technologies and health care solutions.

DIMO‟s goal is to represent the best brands in the world and to provide total solutions for a variety of day to day
requirements and challenges, from lighting solutions to state of the art electro medical products, building
management systems and power tools to light truck to high end cars.