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DTL DDR PPS

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DTL DDR PPS

Hi the morning report had some TEC stocks i thought I would Add 2 more to the mix I have owned DTL in the past and sold it at higher levels had a big fall last 2 days on a report that I thought was ok ? DDR seems to have reached a high your thoughts ? And PPS I am still holding seems to have reached Bottom any thoughts ? ThanksGlenn G. Data#3 came out with their HY report this week that showed double digit growth in sales & profits. Dividend also lifted to new high. First half is typically their ‘soft’ half. They didn’t provide much detail on Outlook which is not unusual for DTL. CEO is leaving in April but that was announced previously and new CEO in place. It’s in the Tech space, #1 in area, yet the Mkt punished them severely by a 20% price drop over 2 days. Yield is low but so are most growth stocks. Is there anything I’m missing? Glenn R.  

Answer

Hi Glenn (s),

Data#3 (DTL) – has fallen ~20% from this week’s high, the company indeed delivered a reasonable operational result, but missed consensus EBIT by -6% hence the stock gave up most of its 1-month gains. We believe value is slowly presenting itself below $8 but two broker downgrades this week could easily see further weakness.

Dicker Data (DDR) – we feel the stock is simply consolidating around $11.20 following its ~60% surge from its 2023 low, the risk/reward looks good under $11.

Praemium (PPS) – we sold PPS in our Emerging Companies Portfolio last month and aren’t considering it at this stage.

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Data#3 (DTL)
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