As Diginty is new to the martkets and the first funeral services company to be floated, what are your views on its future potential?

There appears to be little data on which to ascertain a valuation.

I don't suppose we are going to run out of dead people!

Sept 18: Panmure Gordon: Buy - TP: 1800p.

Debt-financed expansion plans often have a questionnable rationale behind them, but in the case of Dignity they seem to make sense. The company, which operates 698 funeral parlours and 39 crematoriums across the UK, has seen steady growth in both revenues and profits since its flotation in 2004. However, it still only provides funeral services for under a quarter of the deaths each year in the UK.

Furthermore, the country has experienced a stable death rate of between 540,000 and 600,000 each year for more than half a century, although it will be at the lower end of that range in 2014. Hence, the business model of acquiring independent providers seems to be on a good footing. In parallel, management is carrying out a debt restructuring which will allow it to return 54m pounds in cash to shareholders. The stock, nonetheless, is currently trading on 15.6 times´ next year´s profits, which looks too rich, although the firm´s shares are well worth watching should a correction in the price offer an opportunity to step in, writes The Daily Telegraph´s Questor column.


http://sharecast.com/news/thursday-tips-round-up-smiths-group-dignity/22056094.html

Questor/Telegraph complete article here.

One thing no one seems to mention is that, if, with the cash return (the DTY
statement says cash will be returned as in 2013) there is a share consolidation as
happened last year, when capital was returned to shareholders,, one is left with fewer
shares, so it makes sense to wait for a market correction and to buy then, as suggested
in the article.
The Questor comment about waiting half-a-century to get one's capital back is pertinent.
I will be dead long before then. At least DTY will look after me then.

Ex dividend Wed 23 Sept 6.49p

Oct 1: Berenberg reiterates: Buy - TP: 1600p.

Dignity pricing
and share consolidation

13 Oct Investec 1,660.00 Buy

Trading statement Mon 10 Nov

Q3 management statement

Nov 10: Panmure Gordon; Buy - TP lifted from 1800p to 1900p

Nov 11: Numis: Hold - TP: 1550p

Nov 12: Investec: Buy - TP lifted from 1660p to 1800p

Nov 19: Berenberg: Buy - Lifts TP from 1600p to 1850p

DC - Remarkable rise of late.

Downgrade - 16 Jan Berenberg 1,850.00 Hold

Feb 3: Investec raises TP from 1800 to 1840p

Dignity PLC (DTY:LSE) set a new 52-week high during today's trading session when it reached 1,952. Over this period, the share price is up 18.56%.

The recent strength has been quite amazing.