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Dicker Data Ltd (DDR) on the MM Hitlist

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Question asked 17/05/2025

Dicker Data Ltd (DDR) on the MM Hitlist

Hello James and crew, This morning with the portfolio reviews you reported: "We are adding DDR to the Hitlist for the Income Portfolio, with the risk/reward looking attractive below $9". This is interesting and a company I have never before investigated. Whilst the CEO recently sold down his holding due to personal reasons it seems to have increased liquidity a little. Looks also too that the dividends are also paid randomly and not just 6 monthly. Whilst MM has indicated the good risk reward price to be below $9 and it is below that now, where do you think MM may consider a possible buy price range maybe? Thanks as always Geoff. Hi Guys, To use DDR as an example, • You say"We are adding DDR to the Hitlist for the Income Portfolio, with the risk/reward looking attractive below $9". The stock is currently trading $8.69. What would cause you to pull the trigger, or what are you currently waiting for? Thankyou for your ongoing commentary and insights... Thanks Tony

Answer

Hi Guys,

We discussed DDR on Wednesday, describing it as a rare beast, set to deliver solid growth while paying attractive fully franked dividends. This is becuase it’s a relatively capital light business, has a strong position in their market etc. We’ve just updated MM’s PCs, and have used DDR in the process.

DDR aim to pay quarterly dividends, rather than twice a year.
It traded ex-dividend on Friday (16th) for 11c FF, with the next dividend due in August.

The market has had a very good run, so we’re more inclined to add new money post a period of consolidation, while DDR is often more supported leading into a distribution, and they tend to drop more after for a few days (they went ex-Friday). Watch for alerts on this one in the coming weeks.

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Dicker Data Ltd (DDR)

LAST UPDATED 15/05/2025 16:56

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