Having said that there is a real fundamental growth story behind DIC.
It was historically battered down for no reasons. It deserves a rerating and that is happening now with the support of short traders and real time investors.
The basis of support it has received constantly last week shows that it is not a joke, nor the players with single stocks seen in ADX recently. DIC never touched an upper circuit like other play stocks. It was graduallly killing all resistance levels consistently in the last 10-12 trading sessions, only exception being the yesterday's huge trade. It seems that those who sell will be loosers.....fimah
Joined: 03 Jun 2008 Posts: 131 Location: Abu Dhabi
Posted on Mon 09 Jun 2008 08:57 by small fry
Judging by trading volumes, I sincerely hope that we don't have a dump of shares at 4.5 followed by a massive downturn. Past performance of DFM stocks seems to show that speculators go for quick profits.
Or am I just a pessimist.
I think I will try to be optimistic and hold till 5. In the long run, I agree with fimah's comments, I still think DIC is a good performer regardless of its share price.
It's difficult enough to make share price forecasts with any degree of accuracy. Anybody who tries to say when, is more likely to be wrong than right. About the best you could do is say within the next 6 months, or within the next 12 months. As we saw yesterday, it only took 30 seconds for Dubai Investment's (DIC) share price to go up 10% because of one big order. Another couple of days like that, and it's over AED 5.00 .
Unless there's some bad news, and the price drops 10% or more over a few days, and ends up at AED 3.00 . _________________ UAE IPO list | posting guidelines
Recently, we have seen the sepculator focusing on certain stocks ONE by ONE ..driving the price 20% to 30% higher.
It seems they select the stock that are
1) Priced at 2-4 Dhs
2) Reasonable to Good fundamentals
This was happeneing more in ADX in the past 60 days rather than DFM.
In the past 3 session you could see gradual shift of liquidity from ADX (which has very much peaked) to DFM which is still 7% below it Jan peak. I think they will take DFM well above 6000 by early July
Given the HUGE volumes of DIC recently, I would say it is very unlikly to correct below 4.15. There are two strategies now.
1) Sell at 4.51 wait few day try to reload at 4.15 (but you might never get it)
2) Sell just below 5 (4.85-4.97) and exit
The fundamentals AND track record of DIC is very strong it can easily support the stock to stay over 5. PROVIDED the DFM is above 6000
DIC is sitting on a gold mine with their Dubai Investment Park. The land prices there apreciated 300% in the past 6 months (I don't know why but this is what the real estate guys are quoting). They have built many building that are being leased out now.. The other major investment they have in glass factories is expected to generate good profit as the glass and transport prices are going up very quickly WW.
Next stocks that could breakout will be
Tamweel based on very good fundamentals and profit potentials
and
DU They may have a good surprise in 2Q. At 6 Dhs price you are buying this stock only 25% higher than the IPO cost 3 years ago. Explosive population growth and new digital service will drive the revenue growth for a long time. With the government being 80% owner of DU and 50% of Etisalat, we can expect the TRA to continue to force DU and Etisalat to keep the pricing high....
If it is judgmental or guess, kindly do mention that. It is just a request.
Yes, well more than a request as it happens. The forum guidelines say that justification of any stock recommendations / estimates is required.
However, I realise that it's unrealistic to expect a chart or lengthy explanation to be posted every time someone makes a comment about a stock price in the same topic - previous comments may have included relevant information and subsequent comments simply continue the line of thought.
Overall, I'm impressed with what I read and I think members are doing a great job of explaining how they arrive at their conclusions. Keep up the good work . _________________ UAE IPO list | posting guidelines
there was a single purchase worth more than AED 150 million at market order, which captured the entire offer side from 4.13 till 4.53,
Yes, looking at ESCA data, processing of that order appears to have started at 11:33:21 am and finished at 11:33:57 am with prices going from AED 4.15 to AED 4.54 in about 30 seconds. It would be interesting to know if that same buyer bought any more shares later in the session. _________________ UAE IPO list | posting guidelines
The land prices there apreciated 300% in the past 6 months (I don't know why but this is what the real estate guys are quoting).
What ? That's a staggering increase in a short space of time, even for Dubai. Which real estate guys? Do they give some per square foot figures? _________________ UAE IPO list | posting guidelines
First of all, pls dnt post comments abt Du. we are discussion technicals and fundamentals related to DIC.
Yes indeed, DIC trading was bit speculative. But having such strong fundamentals, this share didn't perform as per expected standards. I still believe that DIC is highly underpriced and have great upside potential to even go beyond 5 in short term/long term. This is purely logical. If you think fundamentally, ppl will agree on this. Nobody can predict in how many days it will take. So it will be always be an opinion.
In Sep 2007 the going rate for the DIP area was arround Dhs 120, It is now 300+ (price per Sq for the built up area).
Looks that it will conitue to go up because Nakheel is now selling at 600+ at the Dubai Water Front which is 20 Km down the road AFTER DIP.
DIC still have a good portion (at least 40%) of DIP which is not sold. I can see they are now building more office buiding for lease rather than selling the land.
I would not say that the success and profitalbilty of DIC is all because of the hardwork, big portion of that is just because they got really lucky with the DIP deal with Gov of Dubai. They signed this deal 10 yrs ago when the value of land in that area was next to nothing. They wake up one day and they find themselves in the heart of new Dubai and next to the largest Airport and logostics city in the world
Now they'll wake up again and find that the glass prices worldwide is soaring because of energy and shipping cost !!
I think DIC is the last comapny left in ADX and DFM that did not get their fair share of attension from investors..But AS YOU SAID Sharewadi
DIC Will Have Its Day
Of course, the costal land value is far much more...but they are not selling it, not yet at least.
They do sell the land on Sheikh Zayed Road for Dhs 800. I'm only comparing with the deep inland parts which are more than 10KM away from the coast line. These are going now for Dhs 600
I look into 300 being 2.5 time Dhs120.
By the way, I don't have more than 20% of my portofolio in DIC. I had them for the past 2 years. As much as I like DIC, I would love to see Emaar, Tamweel, Du and GulfNav flying !!
But now I'm thinkin to switch to Qatari stocks might be the most rewarding option. I will feel very bad if they unpeg in few weeks while I was just watching !!!
DIC might atleast fall below 4.10, if it doesn't break above 4.50 this week. Speculators are trying to hold the price to sell still at a higher price that the build up above 4.20 may spike it up again. 4.60 should be a profit booking target breaking a small bubble in between. They have to do it today before the focus goes off and sell is confirmed.
Again, DIC's more than 121 million shares were traded at an average price of Dhs. 4.30 on yesterday. Fundamentals are strong and high volume demand may lead to cross DIC price again 4.50 levels during this week. Good luck………….
Dubai Investments is likely to see more activity as rumors that the firm will open a subsidiary drive the share price higher, a trader at Al Mal Capital said.
Thanks for the update laser, useful information to have. But who said that? Please can you use the appropriate source or quote tags to attribute the statement to someone (eg broker name). Thanks .
I receive document on a daily basis about the market status. The document contains this information.
Please guide me how I can upload the document
I also saw this in the internet
http://www.zawya.com/Story.cfm/sidZW20080610000019/SecMain/pagHomepage/chnAll%20Regional%20News/obj2A17E941-F5E0-11D4-867D00D0B74A0D7C/
Document uploads are not easily possible with the way the forum is set up, but see your previous post for how to post the news (click on the "edit" button) . The zawya link needs a subscription to view so isn't that useful . _________________ UAE IPO list | posting guidelines
Speculators are still to complete their off loading that they kept the stock alive at the end of the day with some buying. Though it's going to be tough, they looks professional and planned to achieve the desired result.
DIC touched 4.10!!! I would expect DIC to trade between 4.15- 4.40 range next week. The people who bought at 4.30 and above might have to wait. But for other people, it is BEST buying opportunity and possibility of earning 5- 6% return in next 2-3 days.
Is it right time to buy DIC? IS it better to buy DIC or Emaar. My freinds were saying that their 2Q profit could be AED 1 billion and 2008 profit may go to over AED 2 billion.
Is it right time to buy DIC? IS it better to buy DIC or Emaar. My freinds were saying that their 2Q profit could be AED 1 billion and 2008 profit may go to over AED 2 billion.
Zayda
If DIC would make half this figure in 2Q, then the stock is a good buy at 4.1-4.15.
If you trust your friends information about a possible Dhs 1b profit in 2Q, then sell everything and buy DIC. I just find it hard to believe they can make this kind of profit.
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? That's a staggering increase in a short space of time, even for Dubai. Which real estate guys? Do they give some per square foot figures?
! Thanks for pointing it out.
.
Again, DIC's more than 121 million shares were traded at an average price of Dhs. 4.30 on yesterday. Fundamentals are strong and high volume demand may lead to cross DIC price again 4.50 levels during this week. Good luck………….
