...and add I did, true to the word. It isn't screamingly cheap, but businesses with this kind of track record rarely are. Nothing in the results, the accompanying commentary and the outlook indicates that their growth trajectory is nearing an end. There could be hiccups, but this looks like a reasonable entry point for anyone with a long investment horizon.

Claude Walker over at "A Rich Life" added DTL to his portfolio last month after making it one of his "Buy" recommendations - see here: https://arichlife.com.au/data-3-asx-dtl-is-a-buy-recommendation-last-traded-price-7-50/

Poor timing considering the market's very harsh reaction to their results today (22nd Aug). That link above may still take you to the "unauthorised" page of their website, meaning that it is still behind a paywall, however he will often release stuff to the general public after a couple of months, so you could try the same link next month and it might work (without a login).

For anybody who is a subscriber (as I am) to A Rich Life, here's Matt Brazier's article from this afternoon: https://arichlife.com.au/data3-asxdtl-fy23-results-mr-markets-harsh-reaction/

The article starts with:

IT services provider Data#3 Limited (ASX:DTL) reported its FY23 results today. The market reaction was savage as Data#3 shares closed 18.8% down on the day.

The company missed consensus EPS guidance by between 4% (per S&P Cap IQ) and about 8% (per TradingView). While the result was below expectations, it was still strong growth, with Data#3 earnings per share up an impressive 22% to 24 cents for the year.

Perhaps one reason for such a strong response to a fairly modest EPS fail is that during the second half of the year the Data#3 backlog of orders related to the global chip shortage largely cleared. This implies that the earnings miss reflects weakness in the underlying business during the second half.

--- end of excerpt ---

There's a LOT more - multiple pages of graphs, tables and explanations. It may also be released to the general public in a couple of months or three. I find it's worth the circa $400 to $450 per year (somewhere in that range, from memory) for access to the reports as they are published. To join the waitlist to become a paid supporter, you can add your name and email from here: https://arichlife.com.au/a-rich-life-supporters/

They do offer pro-rata refunds if you're not happy and want to cancel your subscription/membership/supporter-status (at any time, for any reason).

Most people know who Claude Walker is, so I won't give him a wrap here - let's just say that what he has to say is always worth listening to, even if you don't end up buying shares in the same companies that he does.

Claude and Matt are both good analysts and well worth following, especially for mug retail punters like us :)

Yes, agreed, and I like that Claude usually speaks his mind as well, without trying to sugar-coat stuff. BTW, he changed one of his "Buy" rec's to a "Sell" today. The email started with: "This email is to let you know a buy thesis has broken, so I have just issued this Sell Recommendation."

It is a company that reported today (Tuesday 22nd August 2023) - and dropped by -12% - but nobody here on Strawman.com is talking about them. The last straw here (no pun intended) on them was 4 months ago according to a quick search. I know they were being talked about for a little while, but nothing recently.

I never quite fancied the company even during its pandemic heyday. I have made similar investments in the US which paid off well, but you have to know when to close it out. Of course, there is a far superior alternative in our market as well, though it will be well out of Claude's typical universe in the micro and small cap space.

I could see Vanguard was updated in the register in August

So it appears there could have been some index positioning

On the other is First Sentier that holds borrowed stock which also increased.

Looks like there was a bit of two way hedging going on

The problem with the index thesis here is there is not enough volume traded per day for DTL

In comparison AZS (Azure) which has now gone over 1bn, has at least double the volume as DTL. Much as we hate lithium over here I'm tipping Azure minerals would be a strong candidate over Data#3 for ASX200 inclusion even though Azure is not earning revenue due to the traded volume (although my opinion could be biased as I'm a AZS holder)

I think ASX needs to tighten the requirements on asx200 index inclusion so better quality companies are considered over one with no or little revenue.

I suspect this may bounce back today.

Also, 100% agreed that candour and telling it like it is, is one of Claude’s redeeming qualities. Can rub people the wrong way sometimes, but that comes with the territory. You definitely want that in any analyst you follow.

Bit divided whether to top up here at the lows with Data#3 at the moment or participate in an upcoming CR for another stock.

The move today resembled something like a speculative mining stock hitting a duster.

Not saying Data#3 isn't a quality company. I think it will still generate earnings no matter what.

I would think also more work would flow towards Data#3 given the troubles going on with the Big 4 consulting firms.

As for getting to the ASX200, I think Data#3 will find the going tough to get in the main index.

I bought an initial stake, a little larger than I usually go for too. Still cut up about missing it by a hair at 4.30 odd not too long ago, and it’s up 40%+ since even after this drop.