Do you think Dicker Data (DDR) is good buying at current levels?
Hi, Just wondering if you think Dicker Data (DDR) is a good buy at the moment? The quarterly results released during the week looked good. Thanks Libby
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Answer
Hi Libby,
We have been asked about hardware & software wholesaler DDR a few times during its -50% fall from 2021 highs, i hope people haven’t been trying to pick the bottom with this stock as its struggled to deliver any meaningful/sustainable bounces.
- Revenue increased +9.7% year on year while margins lifted from 8.6% to 9.2%.
- However Net Profit only increased 7% to $25mn due to rising interest costs on working capital plus increased redundancy costs.
The latest quarterly report did read ok but we’re not convinced its enough to turn around the entrenched negative sentiment toward DDR i.e. after bouncing 10% the next ~10% move now feels like a coin toss.
