Viewpoint: Bullish
Dicker Data Limited is an Australia-based technology hardware, software and cloud distributor. The Company operates through two segments: Australian and New Zealand operations. It provides a range of solutions, which include access and surveillance, accessories, backup and recovery, business applications, business monitors, cloud, components, data center, data management, desktops, gaming, Internet of Things (IoT), networking, notebooks, peripherals, printers, pro AV and displays, power solutions, remote working, scanners and mobility, security, uninterruptible power supply (UPS), workstations, storage, servers, and video conferencing. The Company distributes a portfolio of products from the technology vendors, including Cisco, Citrix, Dell Technologies, Hewlett Packard Enterprise, HP, Lenovo, Microsoft and other brands. Its subsidiaries include Express Data Holdings Pty Ltd, Dicker Data Financial Services Pty Ltd, Dicker Data GP Pty Ltd, Dicker Data New Zealand Ltd and Exeed Ltd.
The “Fear Index” is trading around its pre-pandemic levels illustrating how comfortable investors are with risk at present as they’re pricing in basically no chance of further outbreaks in COVID and / or a faltering in the global economic recovery – they may be right but we feel the risk / reward dial has turned too far towards optimism.
No major change in the crypto currency, we’re bullish at current levels looking for at least another 15-20% upside.
Longer dated US bond yields drifted lower last week following the unemployment data which threw up no major surprises.
Fridays unemployment data showed the US labour shortage was beginning to ease but not to an extent which would pressure the Fed to start hiking rates in the near future.
No real change as the large tech names helped push the likes of the NASDAQ and S&P500 to new highs while the old stalwart the Dow struggles to follow suit but it’s now within striking distance and our optimum upside target is only a few good days away.
Last week was the first time since May that the ASX200 failed to trade higher as the local market didn’t embrace solid gains across the US bourses.
SLR rallied almost 5% yesterday but its already bounced very strongly from its late February low diminishing the risk / reward in the process but we feel it’s a quality operation which might suit the more cautious gold investor.
WGX has held the $1.8-$2 very well through 2021, we are comfortable to accumulate into current weakness but see less upside than from the oversold names.
RRL popped over +8% yesterday but after tumbling -60% from its 2020 high its not huge solace for shareholders.
