DDR - Dicker Data ltd

[Fred114]

This stock trending upwards since late Feb12. Seems to have strong financials, but very new to market.

An IT products distributor. Major brands, but mainly markets to NSW

Any interest?

[mark100]

Hi Fred, I have held since 24 June last year when they announced FY11 guidance. Managed to get my initial parcel at 21c and I have bought a few more since. My holding is still small as it's very hard to get stock.

I like the company. Some will be scared off by the balance sheet but you need to have an understanding of the business to make a judgement on that. DDR's debt is high to fund their stock but the stock turns over very quickly. DDR is almost more of a logistics company than IT in that they are a re-seller that turns over stock fast. I have spoken to the CFO and she assures me the company has always been funded like it is now.

Under the current dividend policy it should yield around 12% FF on the current share price

I will keep holding while everything looks positive

[Lizard]

Amazing growth, but I'm having trouble figuring out what they do exactly given that their web-site seems to be giving me a strange raw system error.

From the Annual Report, my biggest concern with owning this stock would be the likelihood of liquidity becoming close to non-existent, given the founders still appear to own 95% of the shares. Once Newport Capital stops distributing their few, what will happen? At least a div should provide some returns and underpin.

Maybe founders will distribute a few of their shares as hinted in prospectus.

Other point would be that I've always found distribution businesses to make very fickle investments. RNS on the NZX is one example, but also CLT and AMO on the ASX. All 3 gave me good returns in the odd trade, but worked out badly as a long term hold.

[drillfix]

Amazing growth, but I'm having trouble figuring out what they do exactly given that their web-site seems to be giving me a strange raw system error.

Yeah me too. And IMO for a data or IT company that is sacrilege to have their site siting like that.

Maybe thats why they have so much money, they haven't paid their web developers or bills to update the site. :P

Nahh, seriously, looks like some bad scripting and the page is not parsing correctly, but when you google search and see the link to the site even, below the link show their keywords being:

DickerData
www.dickerdata.com.au/
raw error. DBD::Pg::db do failed: ERROR: could not access status of transaction 0 DETAIL: Could not write to file "pg_subtrans/5DBC" at offset 163840: No space

Which means they have let this sit on its head for quite sometime so spiders have crawled through and indexed the site and cannot get any info except a corrupt index.html file which generates the error shown above.

[mark100]

The page can't have been down for long. I downloaded the Newport analyst report from there last week.

Dicker plans to sell his holding down at some stage so there will be increased liquidity in the future but I probably will have sold out by then.

[mark100]

Addition of the HP products is projected to generate 'substantial' revenue for FY14. Another profit increase coming up I assume

[mark100]

Not many details given about this acquisition but the market likes it. Making new highs again. I expect the interim result will be ok as well

[noodles]

Not many details given about this acquisition but the market likes it. Making new highs again. I expect the interim result will be ok as well

I don't understand why they can't give financials for the acquisition. Downgrades my opinion of management.

[noodles]

A really good write up on Ddr.

http://www.eternalgrowthpartners.com...–-281114

[bull....]

not a mention on this one for ages great div and good growth as per latest results, breaking out