@lowway @mikebrisy @edgescape It looks like DTL is on track to come in very close to analyst consensus earnings for FY24 (NPAT $44.6 million). DTL reported $21.4 million for the half. Assuming the same next half that’s $43 million. I’m surprised DTL is copping such a huge thrashing on such a narrow miss.

This is a high quality business which I’d like to get back into. Take a look at the ROE over the last 10 years. You don’t get much better than that!

Source: Commsec

Assuming FY24 NPAT of $43 million, ROE is likely to be over 60% this year. I have only three businesses with higher ROE on my watchlist (GQG, LOV and NWL). DTL is paying most of its earnings out as dividends (90%) so only 10% is reinvested, but reinvesting at a ROE of 60% is still an incredible growth engine, and it has a lazy $117 million (note correction here) in cash and no debt.

Of course the market already knows all this and even at the the current price of $8.50 I might return 7% per year on new money. It’s getting tempting for a business which just keeps on improving in quality.

Not held, yet!

Couldn’t help myself! I just took a nibble and will add if there is more weakness in the share price.

@Rick

I haven't had the chance to check others consensus but I feel this fall is a bit over the top

I hope so @edgescape. I’m still adding!

I did the same in August last year Rick when the market belted them for simply matching the forecasts and the price dropped to $6.12 (real money, not straw dollars). I like them as an Aussie AI play on top of their bread-and-butter IT contracts with the various State & local governments. As a Brissie boy, as are Data 3, I've held some since they originally floated, so DTL has been very kind to me and I see movements like today as possible buy signals, not sell signals. Hope it goes well for you.

Couldn't think of where else to put some of the potential ALU windfall. So have now parked some here after my order hit the buy limit plumb on the lows for the day.

The recovery from the lows hopefully is a good signal. Pity there is no guidance again but I've seen this before. Better to underpromise than overdeliver as they say.

Not just investing in management, but also a reliable name that can deliver results to customers hopefully in the long run.

So far, so good Rick. But obviously this is a long term play with many ups and downs