DIPD.N0000 (Dipped Products PLC)

I don’t think it will come to 250
Next week report will come

As expected by many, super result for Q2
EPS over Rs 21

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So whoever collected below 300 can see their worth will be doubling within very short time. Expect an unimaginable demand from tomorrow onwards.

Though I don't like to spend much time at the forum ( due to some bad experiences here and reasons I said before ), it hard for me to keep quiet against my conscience when I see certain thing happening


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PLEASE READ CAREFULLY ON DIPD.


1) DO YOU REMEMBER , I WROTE THE BELOW POST WHEN DIPD WAS Rs 80 !!!!   


2) I extract the most important part in that post to highlight
what I said then at Rs 80 when NO ONE WAS INTERESTED IN DIPD.



"Having said that this is a good company at a good price at Rs 80.

Will not be a favorite or will be talked about, untill a push happens after

mass buying . Then amazing stats , figures and promo will happen."







HAS WHAT IS SAID THEN COME TRUE NOW ?





3) DIPD is now Rs 325 ( 4X since the time I mentioned this)


4) DIPD ran from Rs 80 to 200 based on, and future expectations
 and Rs 10 earnings for June.


5) Then based on further eps improvement expectations,
    and promotions it ran to Rs 325.    

6) Now they reported Rs 21 eps for Sept,  which kind of justifies this price.

I also see DIPD report for Sept is Clean. That is good.
It means most earnings came from improvement on Glove sales
due to COVID + plantation profits and not any funny accounting games 
( if you want to know what mysterious accounting games are go check
how BLI reported earnings for september   )



7) DIPD FUTURE :


Note this

a) DIPD is earning these abnormal profits due to COVID sales benefits.

b) They cannot sustain these huge eps forever. In other words DIPD
massive earnings are seasonal and most probably for this year only( FY2021)


c) When the many COVID Vaccines come out  that are in pipeline within the next few months, and COVID  medications improve , the abnormal sales/margins will reduce. 

( Btw there are lot of Corona medication out there which is still not released to public. Do you know how TRUMP got treated with a
Corona medicine when he was infected but such medicine is not accessible to public yet?)


d) ONLY Companies that can earn consistent profits year after years should
go up in value step by step consistently  after justifying earnings.
Not seasonal and COVID benefit shares that will not sustain earnings over time.  

That should be  LOGICAL to anyone right?


e) For DIPD to justify prices like Rs 400-500, next 2 quarters need to earn Rs 30 eps atleast ( in comparision with other shares in  manufacturing   sector that are trading with PE of  5.)

DIPD already is trading 1.5 Asset value.
Very Much above its sector. 


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As a person who recommended this at Rs 80, I now warn the same against following undue promotions happening now in cyber space to push this to unrealistic values not considering future earnings in 2022FY.



If people get together to push this, who knows even Rs 1000 is possible. Why not Rs 2000.




But, Money is not everything as you will understand.





We do not want to earn at the expense of someone else who will lose.


People will pump seasonal shares to dump on others.
EXPO is another one. But the final holder will lose a lot when market price comes down when EPS does not match market prices.


This is exactly how DPL came down from Rs 150 to R 10.
TWOD from Rs 70 to eventually get delisted even with ZERO. 



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Summary :




* DIPD is good company.

Thats why I recommend at Rs 80 when Zero people talked about it.  


*Price now at Rs 325 justify the current earnings.


*DIPD is a hold for now at Rs 325.

  But do not push DIPD to unrealistic targets.


Any future major price ups people suggest  needs be justified

by Rs 30 eps next 2 quarters. When/if  the seasonal earnings don't macth expectations, and after the pumps and dumps , the  market prices  then will come down.






KNOW THE REAL FACTS AND SITUATION ON DIPD.
Do please do not overvalue this.


If EXPO can be manipulated and pushed with herd mentaliy

like this, I guess any share can.



BUT THERE IS MARKET PRICE.
THEN THERE IS  VALUE.

Its 2 different things.





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ps :  I know that I might get dislikes or certain  people who hold DIPD
can be upset with me for this post.




I recommned at Rs80. If you bought it 300% times profit



BUT THERE IS ETHICS WE ALL HAVE TO FOLLOW.
MONEY IS NOT EVERYTHING.



I get nothing for spending all this time to recommend it Rs 80 

when no interest was there and now at Rs 325 when it is promoted everywhere



As decent humans we all need to live by our conscience.
Earn money ethically.

Good luck with DIPD to holders.

slstock wrote:

I guess YK missed seeing this too. Nobody is going to answer you question right ?

People will only talk about  the  shares they hold or are interested in.  Else
who is bothered to help others.

Okay, I have not analyzed the latest details , but I think this quarter is not
going to be very good for DIPD. Also you need to consider the rubber prices.  
They should have done okay not great.

Having said that this is a good company at a good price at Rs 80.
Will not be a favorite or will be talked about, untill a push happens after
mass buying . Then amazing stats , figures and promo will happen.

If you have patience and is for long term - hold.
But if for short term , there are other shares.

Thank you dear SLS

Asia securities has revised it target price to Rs 560

Today closing price 399

This is not buy recommendation

subash wrote:Asia securities has revised it target price to Rs 560

Today closing price 399

This is not buy recommendation

Closing was 390 and high was 399

Can anyone comment on DIPD. Now it is going around 390. Asia Asset and quoted 560. Why this down fall when EPS is 32.

Tissara
This is common after big rally some taking profit and new investors taking the battle
My own view is they can achieve Asia target, but do your own analysis and invest as I may go wrong too

Remember there are investors who prefer the Bird-in-the-hand theory in equity markets.

tissera wrote:Can anyone comment on DIPD. Now it is going around 390. Asia Asset and quoted 560. Why this down fall when EPS is 32.

Now it is Rs 330.

Tissera , did you read my post above explaining
things on DIPD ( I posted such just the day before the last push began ) It may answer some of your questions directly.

Now DIPD is trading back down to the around the very same price Rs  330 when I made that post! ( down after push to Rs 400).


if you read that post things will be clear to you as I explained all such before the push ( pump) and the selling ( dump) happened.




—————————-

This is a general Message to all. ( not relating to Tissera)

People like to follow others / brokers who promote the same share they hold. They  like higher and higher target prices to make money quicker and quicker!
But Every  share should have a right Fundamental Value at a Given time.

Many don’t  care about learning correct stats, facts , value or future of the share right?

People   like SLS who give facts and had warned on dozens of shares over the years ( you be the judge  how many have come true ) Will go unappreciated.

People  like to still ignore  what I said  Even when it has come true within a week. ( for this round)

I guess people don’t Like the truth!!

They only need people to say what they like to hear!

——————

For the sake of DIPD people who bought at Rs 400
( and now at 20% loss in a week)

1) you can only hope DIPD can report Rs 30 eps for December to justify price over Rs 400 fundamentally ( and stay above such price without falling)

But can they keep reporting higher and higher eps for ever ?  ( read my post above and decide yourself)

2) Pray for manipulations again ( including higher and higher target prices by ) before December results can prove Dipd deserve another run based on fundamental earnings

Let just say for argument sake Brokers and HERDS push DIPD to over RS 500 with new  stories or when ASI goes up ( even before December eps is released)

What happens to the people who buy at the top of these promotions and these targets when earnings don’t maintain in the future.

Ps : I have  my life challenges To face now. But yet I found time to write all this for public sake and any broad minded people to read.

Btw Expo was pushed to Rs 29. Now Rs 25 .
can they keep earning Rs 2 eps each quarterfinal further price ups? if only so these target of Rs 30 - 40 will be valid.

Btw eps is also not everything when you value companies

—————

ALSO DONT FORGET.

I AM THE ONLY ONE WHO RECOMMENDED DIPD AS A INVESTMENT BUY AT RS 80 when nobody wanted DIPD

When everyone wants it at 4x the price, I am only now talking about  facts  so the right value for DIPD is attained based on earnings.

Do you know why Brokers keep raising target prices?
( there are reasons beyond share fundamental value to due such)

Thanks SLS,

Yes I read your post. Thanks SLS

So Can DIPD keep on reporting good EPS?

1. As Covid-19 hurt many businesses - many apparel companies in South Asia, changed the line of manufacturing by moving to high demand products such as face masks, ventilators, sanitizers and other PPE products.

2. Recently, Standard Chartered Sri Lanka offered USD3.6 million loan to Dipped Products PLC helped them add new production lines for personal protective gloves destined for the US and the EU. (source : [You must be registered and logged in to see this link.]

3. World's top surgical glove maker "Top Glove", a Malaysian company that is the world's biggest manufacturer of surgical gloves closed factories due to a surge in coronavirus cases among workers, at factories in an industrial area near the capital, Kuala Lumpur. This company has the capacity to produce more than 70 billion gloves a year and is a major global supplier.

Now who gets the benefits being a top quality Glove manufacturer in SL? Recently DP revealed in an interview @ Derana 360 about receiving a contract for 3 years to supply Gloves.

4. Ok.. now look at the chart..

Volume has subdued while share price up with a large Green Candle. The breaking of Drama area (340 - 347) is the area TAs looking for and entry with more volume. This is also the key towards price marching to 400. But you cannot command more than 18% if you enter above 340.

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Issue is how much selling can happen from the Sri Lanka's largest pension fund in the run to 400.

The Invisible wrote:Issue is how much selling can happen from the Sri Lanka's largest pension fund in the run to 400.

Yes that can happen but will be above 360 imo..

Oct-Dec Qtr almost done, still have a potential requirement of productions of DIPD where this pandemic goes.
what is ur view from TA side?

smallville wrote:

The Invisible wrote:Issue is how much selling can happen from the Sri Lanka's largest pension fund in the run to 400.

Yes that can happen but will be above 360 imo..

DIPD will record equal or higher EPS than July -Sep Q. Hope to see views on TA side from Smallville.

Yes, similar or better result for Oct/Dec Q