Pinned straw:
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
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.
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]
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.