$DDR - DICKER DATA - Good momentum

$DDR - DICKER DATA - Good momentum

Dicker Data has been having a good run of late. Main concern for me for an entry is its liquidity. Buyer depth is gappy but certainly worth a watch as its making new highs supported by volume.

Dicker Data Limited is engaged in the wholesale distribution of computer hardware, software and related products. The Company operates through two segments: Australian and New Zealand operations. The Company sells its products to over 3,000 resellers. The Company offers account management programs, which include drop ship delivery program; server and storage presales team, eclipse program for HP business opportunities; extended producer responsibility (EPR) Program for Toshiba notebooks for corporate accounts requiring volume pricing, and imaging and configuration. The Company offers a range of credit options, including direct transfer, credit card (VISA, Mastercard and American Express), and approximately 30 days from monthly statement credit account. The Company's subsidiaries include Express Data Holdings Pty Limited, Dicker Data New Zealand Ltd and Simms International Pty Ltd.

Comentário:

Nice little move up with a pullback on the RSI overheating.

Comentário:

Nice volume today off earnings results.

Announcement

- Revenue for the quarter was $386.9m, 21.1% higher than the comparative quarter last year. The revenue growth is attributed to strong performance across all our vendor partnerships and realising full value for new vendors.

- Profit before tax finalised at $13.5m, tracking ahead of our forecast for the quarter, and 46.7% higher than comparative quarter last year. Profit growth tracked ahead of revenue growth with costs as a percentage of sales falling, resulting in PBT margin improving to 3.5% versus 2.7% for the previous comparative quarter. The Company continues to invest heavily in additional headcount and productivity measures to support our growing customer base and vendor portfolios. The company has also significantly increased its working capital investments through Q119. As a result we expect the Company’s cost base to increase in subsequent quarters.

With our Q1 achievement tracking ahead of our forecasted number for the quarter, we are confident that our full year result will be achieved and re-iterate full year pre-tax profit guidance of $51.4m for FY19.

Comentário:

Still performing nicely after a couple of corrections.

Comentário:

Got stopped out in the high 7's after a good run. Looks like it could be making a comeback again. Worth a watch.