Australian (ASX) Stock Market Forum

DDR - Dicker Data

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vitaliano said:
I just looked at the daily & weekly chart and it is still in a downtrend. Would wait for a better opportunity.
Click to expand...

Holder for several years, it has been a bit of a wild ride lately but I topped up on July 26th at $7.66

Screen Shot 2023-08-13 at 4.23.26 pm.png
 
vitaliano said:
I just looked at the daily & weekly chart and it is still in a downtrend. Would wait for a better opportunity.
Click to expand...

Not sure why you would make this comment in reply to a 9 year old post! Ironically thats how long I have held DDR, bought in the $1.60 range back then, now around $8.50 let alone the divvies which amount to significantly more than my purchase price. What better opportunity would you envisage?!!

Given its your only post on ASF, perhaps you are just a troll?
 
galumay said:
Not sure why you would make this comment in reply to a 9 year old post! Ironically thats how long I have held DDR, bought in the $1.60 range back then, now around $8.50 let alone the divvies which amount to significantly more than my purchase price. What better opportunity would you envisage?!!

Given its your only post on ASF, perhaps you are just a troll?
Click to expand...
I am new to this and did not realise it was an old post. Take it all back.
 
Fair enough, I also withdraw my unnecessary comment about being a troll. (No edit function is a pain at times!)
 
H1 2023 results out for DDR yesterday, red flag with them playing accounting games with revenue recognition which greatly flatters their gross margin. Another adjustment to be made going forward to track the actual financials. It's stuff like this that I hate with a passion as an investor. Just no need for DDR to play round with financials like this. Otherwise as announced previously, gross margins have returned tio historical levels and FCF is strong with about 100% conversion rate from Earnings.

Screenshot 2023-08-30 at 6.13.33 pm.png
 
The 50 day MA above the 200 for the first time in a long time.
Volume is dropping off, however. On the watchlist...
 

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On top of the accounting shenanigans of the H1 results we now have a trading update that waffles on about AI, absolute nonsense from a distro. The 🚩🚩🚩's are growing for this business.
 
galumay said:
On top of the accounting shenanigans of the H1 results we now have a trading update that waffles on about AI, absolute nonsense from a distro. The 🚩🚩🚩's are growing for this business.
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kept on missing my target prices for this one

maybe that has been a good thing

i agree about 'AI waffles '
 
galumay said:
On top of the accounting shenanigans of the H1 results we now have a trading update that waffles on about AI, absolute nonsense from a distro. The 🚩🚩🚩's are growing for this business.
Click to expand...

Interested to know more of your thoughts. I have owned shares for several years, and if anyone has any good or bad info I'm always keen. Can you shed some more light on your comment?

I'm no computer expert but I have owned enough to know that new software and operating systems demand more and more resources from HDDs, memory and CPU. I've had to replace PCs and laptops for home and business not because they failed but because they became excruciating slow, or a required program update would no longer work.

Security is an issue, hacking is an issue. Businesses that store personal information are going to have the latest and greatest systems to ensure that they are not hacked, sued and fined.

AI is just another resource hungry program that will cause a lot of people grief and require them to purchase new equipment.

Do you think that AI is going nowhere?

Strong demand for software, networking and storage buoyed the Company as at end of the Q323 period, delivering​
high levels of growth and offsetting the continued decline in demand for PCs​

Demand for PCs remained in decline across both Australia and New Zealand during Q323. This trend is expected to continue into the Company’s fourth quarter, as a byproduct of the accelerated PC refresh cycles caused by the demands of hybrid working as a result of the pandemic​
​
Microsoft is officially ending support for Windows 10 in October 2025**. Beyond that date, Microsoft will no longer provide security updates or technical support for the product. As with previous end of life events, it is expected that many organisations will begin their PC refresh cycles to modernise their PC fleets to run the current supported version of Windows, Windows 11, ahead of the end of support date. Furthermore, the coupling of increased cybersecurity attacks in both Australia and New Zealand with underwriters placing even stricter requirements on cybersecurity insurance policyholders is expected to drive further demand for modern PCs with the latest cybersecurity feature.​
​
The arrival of AI has created a tremendous amount of noise in almost every industry. However, the ability for organisations and individuals to begin to truly leverage the benefits of AI are closer than ever before. As Microsoft works to bring its much-awaited CoPilot product to general availability, the Company’s device partners are working closely with chipset manufacturers to access the technology containing enough compute power to handle the demands of generative AI, running locally on a user’s PC.​



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I have owned DDR for about 10 years, one thing I am always mindful of is Fast Jesus has always run the business to maximise his dividend stream to fund his hobbies, hence the high payout ratios and quarterly payment.

Also its always carried an uncomfortable (for me) amount of debt to cover the working capital needs of a very low margin distribution business.

Recently there have been some red flags for me, as I said, the accounting shenanigans to inflate the gross margins is annoying and unnecessary IMO, and now the sort of narrative hype I expect from pre-profit stonks - babbling on about AI when at the heart of it they just buy boxes and sell them for a bit of margin.

I continue to hold a large position and I am not about to sell, but my conviction is lowered due to the red flags and I will be watching it very carefully going forward.
 
galumay said:
I have owned DDR for about 10 years, one thing I am always mindful of is Fast Jesus has always run the business to maximise his dividend stream to fund his hobbies, hence the high payout ratios and quarterly payment.

Also its always carried an uncomfortable (for me) amount of debt to cover the working capital needs of a very low margin distribution business.

Recently there have been some red flags for me, as I said, the accounting shenanigans to inflate the gross margins is annoying and unnecessary IMO, and now the sort of narrative hype I expect from pre-profit stonks - babbling on about AI when at the heart of it they just buy boxes and sell them for a bit of margin.

I continue to hold a large position and I am not about to sell, but my conviction is lowered due to the red flags and I will be watching it very carefully going forward.
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Thank you.

One reason I hold DDR is because I like the way "Fast Jesus" remuneration is by dividends, sort of incentivises himself to keep the SP growing. But I do understand your concern.

I was worried when DDR announced their expansion plans, but that must be a good sign that they are re-investing in the business. Isn't it?

When your red flags increase to the level of sell, please keep post your concerns.

www.dickerdata.com.au

Facility Update 2023

Construction has recently begun on our warehouse expansion at our Kurnell headquarters, marking the next significant milestone.
www.dickerdata.com.au www.dickerdata.com.au
 
JohnDe said:
Thank you.

One reason I hold DDR is because I like the way "Fast Jesus" remuneration is by dividends, sort of incentivises himself to keep the SP growing. But I do understand your concern.

I was worried when DDR announced their expansion plans, but that must be a good sign that they are re-investing in the business. Isn't it?

When your red flags increase to the level of sell, please keep post your concerns.
Click to expand...

The concern is I want the owner/founder incentivised to run the best possible business, paying dividends is the least preferred capital allocation IMO.

It MAY be a good sign if they are reinvesting in the business, as long as the return on that invested capital is sufficient. It may be a terrible sign!

If I sell I will let you know!!
 
galumay said:
I find it unlikely I have found anything much that an investor of your skill and experience has missed!
(I apologise for my mean comments about EHL!)
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depending on when you bought them ( if you did ) EHL has been a white-knuckle ride

( i hold EHL only down 37% , which is better than some )
 

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