Forum Topics DTL DTL Bull Case

Pinned straw:

Added one year ago

52 Week high today

Checking the investor day presentation , apart from having the MD for Microsoft Australia as guest speaker, the word "AI" was mentioned several times on the 15 November call from the new CEO

443725c7481fd3917f36c511942c1023411d8a.png

aa44242268de6b9a403dc2c328494725222a29.png

The CFO Cherie O'Riordan also mentioned focusing less on margins and more on improving profitability. They believe by not growing gross margins, Data#3 will be more competitive in winning new business and hence increase profitability.

5f45d22f8d27b6766d51dbd99bd67a516989d7.png

Data#3 also mentions they are able to still pass price and wage inflation into their customer contracts. Several measures mentioned include:

  • Reseller agreements that allow the company to pass price increases to the customer
  • Professional services contracts being more time and materials based while managing fixed price contracts
  • Periodic price reviews of managed services contracts

Finally for Working capital, they have no issues with drawing down this component as it is mostly current and there is a low default rate from customers

Lots to unpack from the call transcript so above is just a summary of the main points..

There was also a special call today which I do not have access to the transcript so not sure who was invited here.

Note: I've been cashing on the dividend reinvestments in SRL only. If only I bought more during that mini crash months back.

[held]

thunderhead
Added one year ago

I used that crash to initiate a position after watching/following the company for a while. Unfortunately, I only bought about half of what I would consider a good weighting.

There was a dip to $6.50 or so in the weeks after - should have added to my position then, but I got too greedy for a better price. Oh well, 'ems the swings and roundabouts.

8

edgescape
Added one year ago

@thunderhead

My #1 holding is Data#3 and has been for some time when the price crashed under $3 during the pandemic and used every selloff to top up when management started buying afterwards.

I held off adding too much because

  1. Quite tough seeing it crash that day being the top holding
  2. I didn't want to put too much weight on Data#3
  3. Thought the index funds will continue to unwind their bet of entering the ASX200 and might be worth waiting for the trading to settle.
  4. Thought their focus on national opportunities limited their growth options - but I think that's irrelevant because delivering a profit and having sticky customers is what matters.


14