DDR - Dicker Data

[bk1]

I can only think that the market views it's value as priced for perfection and any bad news is acted on accordingly.
Hammered on Friday after releasing a market update statement at 15.30...
It still hadn't recovered from the 10% fall in early March.

Not held

 

[BossMan.]

 

[galumay]

Why you should always dismiss anything brokers and analysts write. Reading that the only conclusion I can come to is that they didn't even bother reading the update from DDR.

No drama, happy hodler and the 10% increase in dividend is a nice surprise.

 

[galumay]

For the fans of Racey Jesus!

 

[JohnDe]

Ordinary Dividend/distribution amount per security AUD 0.1100000

 

[rcw1]

Good afternoon
So then, annual report/financial published on Thursday morning (27/02/25) and market responds favourably. Next day complete turnaround. Not sure why.
One minute

Financials summary:

• Gross revenue of $3.4 billion, up 2.9% on the prior corresponding period (pcp);
• Gross profit of $324 million, up 2.7% pcp;
• Full-year gross margin maintained at 9.6%;
• Cash as at 31 December 2024 was $45.8 million, up from $11.6 million pcp;
• Final dividend of 11 cents per share; and
• Net profit after tax of $79 million, down 4.2% pcp

Not holding

Kind regards
rcw1

 

[galumay]

Racey Jesus selling more to finance his divorce settlement and the Racey Rodin.

 

[galumay]

Racey Jesus off to play with his car in NZ.

Have to think about what the impact for DDR is, at least the board has been there for a fair while and Fiona takes the exec chair role.

 

[divs4ever]

Racey Jesus off to play with his car in NZ.

Have to think about what the impact for DDR is, at least the board has been there for a fair while and Fiona takes the exec chair role.

View attachment 199591

hmmmm ...

maybe the numbers will finally crunch attractively ( for me )

a big drop or a relief rally ( now a new direction has been confirmed ) ?

 

[galumay]

Like NWH, I dont think Mr Market is going to give us the opportunity we desire!

 

[divs4ever]

Like NWH, I dont think Mr Market is going to give us the opportunity we desire!

i did have a nerve-wracking but ultimately profitable run in NWH ( my cheapest parcel was @ 18.5 cents )

maybe Dicker Data without Mr. Dicker present will give me that opportunity , investor sentiment can be a strange beast AND the new Chair might make a change of direction ( or focus ) that some loyal holders find unattractive

time will tell

 

[Smurf1976]

a big drop or a relief rally

I note price is near a level that has been significant in the past.

So a bounce from here? Or it breaks through support and down we go?

Chart is weekly. Horizontal line is just a visual aid placed approximately and is not a calculated value.

 

[galumay]

DDR, this is not a serious company, a brown box distro purporting to be an AI business. An embarrassing AGM presentation. No wonder Racey Jesus resigned.

 

[divs4ever]

DDR, this is not a serious company, a brown box distro purporting to be an AI business. An embarrassing AGM presentation. No wonder Racey Jesus resigned.

my spare cash went into NUF , today

will watch this , for a later re-assessment

but sadly most of my IT-related stocks ( that i still hold ) have embraced variations of this model ( relying on software only/cloud-based applications ) as well .

luckily i took my investment cash out of them at a sensible time

so can i do similar here (create a 'free ticket ' to ride on the AI narrative )

 

[galumay]

"taking" your investment cost out doens't create a free ride though, although I guess it may create that illusion. It can also create massive opportunity cost, think about someone buying PME at $1 and then "taking" their investment cost out at $2. Potentially millions of dollars in opportunity cost. My rule is to not sell a position unless the likely returns from the alternative allocation of the capital are higher than those of the original position. I want to maximise my IRR over my investing timeline.

Returns on capital need to be calculated honestly IMO, invested capital + capital appreciation or loss + dividends - costs - tax.

 

[divs4ever]

"taking" your investment cost out doens't create a free ride though, although I guess it may create that illusion. It can also create massive opportunity cost, think about someone buying PME at $1 and then "taking" their investment cost out at $2. Potentially millions of dollars in opportunity cost. My rule is to not sell a position unless the likely returns from the alternative allocation of the capital are higher than those of the original position. I want to maximise my IRR over my investing timeline.

Returns on capital need to be calculated honestly IMO, invested capital + capital appreciation or loss + dividends - costs - tax.

that depends on where you park that money next , take for instance i exited Blackmores and swapped into WES ( 3+ WES shares for every Blackmores )

so when i do such things i am very mindful of selecting a good place to reinvest that cash ( sometimes on the same day )

now PME has been an awesome capital gain , but the current div. income ( even if i kept the original holding ) won't pay the major part of my bills ( despite still being my largest holding @ 10% of the current portfolio )

whereas CLW ( my third largest holding ) pays more in divs per year despite being only 2% of the PME current value ( if i kept the entire original holding )

please note it is unlikely i will live another twenty years although PME might yet go another 5x ( over $1000 a share ) in my lifetime the div. payouts are unlikely to are unlikely to go over $2.50 per year

AND would the average investor be comfortable with a portfolio where PME is more than 60% of the portfolio value ( if i held onto them all ) and more than the current value of the farm where i am living .. livestock included

now other folks have different priorities and time-lines , but PME was a windfall and i decided not to be overly greedy

( i have seen 50 baggers disappear into nothing in my short investing saga .. luckily i jumped the week before that collapse happened there )

but investing is all about YOU ( and how to get a good outcome for YOU )

cheers

 

[divs4ever]

given the last 14 years in the market i factor in the probability that most companies will fail or be taken-over

only a few seem to be immune to that trend

i would love to hold every stock i have for the rest of my life , but in my investing adventure , i have been evicted from dozens of companies both big and small , i have to take note of the attrition rate in the top 300 stocks in my calculations