Does MM prefer DRR or DTL?
what are your thoughts on DRR it was down 10.65 % today if you could only buy one would you buy this, or DTL ? I also sold SGP , I was thinking CWP might be a better buy to keep some money in housing your thoughts ?
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Answer
Hi Glenn,
- Data#3 Limited (DTL) is a $1.1bn IT solutions business, we like the stock with a break to new highs above $7.50 appearing imminent.
- I presume you mean DDR (Dicker Data), the IT product distributor which was down during the week following a softer result that showed decent revenue growth but substantially higher costs , translating into no increase in profits. It’s a strange combination which led to a string of downgrades, and while the stock is oversold short term, we would not be buying this weakness.
In terms of our preference to housing we are still conscious of the remaining risks in the sector, Mirvac’s -4.6% fall on Thursday illustrated the point perfectly, we prefer the construction plays such as James Hardie (JHX). Our sell on Stockland (SGP) was a call on the sector more broadly.
