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DDR - Dicker Data

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piggybank

Joined
4 October 2012
Posts
871
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The stock has shot up (35%) the past couple of days, mainly as the result of acquiring Express Data Holdings Pty Ltd (announced to the market yesterday for A$65.5m).

​
 
It's extremely tightly held by 2 main shareholders.
 
DDR up 20% today to $1.80 on the declaration of a $0.70 per share dividend.

Now just waiting for a correction notice admitting that it was a typo, and the dividend should in fact be 7c. Dividend last year was only 5c so anyone buying without doing some basic common sense testing is just asking for it.

Should the ASX reverse all trades on this basis? Thankfully the volume is only very small.
 

The only other possibility I can think of is that Fiona Brown and David Dicker, who own over 90% of the company, plan on using the DRP to issue more shares to themselves... meaning they only have to pay 5% of the shares @ 70c in dividends at most.

Not quite sure what the benefit is though
 

Suspect it is only .7c last interim was only 1c and they appear to pay quarterly.

Interesting to see what does happen with the trades.
 
craft said:
Suspect it is only .7c last interim was only 1c and they appear to pay quarterly.

Interesting to see what does happen with the trades.
Click to expand...

Haha.. you are right. I made a mistake when I was pointing out someone else's mistake.

DDR is in the middle of a significant acquisition so a trimmed dividend makes sense.

I actually rang the company but everyone who could answer the question relating to the announcement were in a meeting...

P.S. And now we have DDR - NR.
 
craft said:
Suspect it is only .7c last interim was only 1c and they appear to pay quarterly.

Interesting to see what does happen with the trades.
Click to expand...

127.7m shares on issue x $0.70 dividend = $89.39m cash required. Unless they are adding to the already high leverage used in this company - then probably not.

But the sealer is that there are only around $7m of franking credits available??
 
craft said:
Suspect it is only .7c last interim was only 1c and they appear to pay quarterly.

Interesting to see what does happen with the trades.
Click to expand...

Decision by ASX. All trades reversed...

I am neutral as to whether it is the right thing to do, but I know I'd be pretty pissed off if I was able to profit from the foolishness of others.

Perhas they should have made the company be the principal to every reversed trade as a penalty for being sloppy on their announcements.
 
Added DDR to my SMSF, expecting some very positive synergies to start showing up in the balance sheet as a result of the bedding down of the Express Online acquisition.
 
galumay said:
Added DDR to my SMSF, expecting some very positive synergies to start showing up in the balance sheet as a result of the bedding down of the Express Online acquisition.
Click to expand...

To be honest, I'm surprised DiData let Express go so cheaply. I know it was out of the 'scope' of their strategy, so to speak, but Express is actually larger than Dicker (by Revenues) and I can't imagine margins being much thinner...
 
Added some more DDR to my SMSF this week, at $1.43 they are great value, all the indications are that the acquisition of Express Online has been very successful and I think they will do well when the market turns and results filter out.
 
Another solid half year for DDR, good growth in revenue and profit. One of the better perfomers in my SMSF.
 
It's time for an update on DDR. I've mention this stock in the short term trading thread but DDR is not suitable for this as price remains in a range. Price has been going sideways for most of 2018.
I'm mentioning it now as there are indications (portents) that price may soon get above 3.00.
For the chartists; rising higher lows, rising OBV and TMF

 
A great business from the fundy point of view @peter2, very tightly held by management, about 70% from memory. Lots of skin in the game! They have steadily grown revenue, earnings and dividends over the years. I wish I could find more businesses as good! I got in before they took over Express Online and it is close to a double bagger for me. DDR also pay a dividend quarterly which is a little unusual.
 
Reactions: rnr
A storming day for DDR on no news at all, up nearly 6%, broke through $5 and now a triple bagger for me. (plus $10k's of dividends over the years.) My biggest position in the SMSF now.
 
galumay said:
A storming day for DDR on no news at all, up nearly 6%, broke through $5 and now a triple bagger for me. (plus $10k's of dividends over the years.) My biggest position in the SMSF now.
Click to expand...

Yeah, it's done very well. Average purchase price of $1.70 here - bought a bit back when they took over Express Data and the stock tanked on a bad HY.

If only I bought more than I did...


And an interesting bit of info: if you bought $10k worth in Jan 2011, here's the return:


52% CAGR is just insane.
 
Yes, Klogg. I must have bought just a bit earlier, my average price is $1.63, its my biggest postion by far. It was always a very high conviction business for me.
 
@Klogg or @galumay After staying in a tight range for all of 2018 price has bolted higher from $3 to $7. Was this price explosion instigated by any corporate development in late 2018?

 
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