COO Vladimir Mitnovetski has purchased $180,500 of shares on market this week. Encouraging sign that the market reaction might be overdone.

I came across this blog post by Tomasz Tunguz, a venture capitalist, estimating software spending growth for 2024:

His analysis is based on a Gartner report . It is mainly concerned with cloud spending but breaks out some subcategories of IT spending. 

Dicker Data released an encouraging update last week which showed an 8% increase in revenue compared to the prior corresponding period.

If the forecasts are correct this is promising for Dicker Data sales growth going forward. Although software only makes up a small percentage of their revenue I would assume it is higher margin (but I couldn’t confirm what this is from a brief search.)

Also worth noting is that hardware, which is the bulk of DDR’s revenue, is also forecast to grow modestly after two grim years.

This is all speculative, obviously, but my thinking is that IT spending has been constrained recently but that can't continue forever.

Disc: Held IRL 

CEO David Dicker issued a statement clarifying his sale last week of 2,740,000 shares should not be interpreted as a indication that his role or interests in the company have changed.

The statement confirms he still owns 33.6% of total Dicker Data shares issued.

My view is that this is a fair statement and the price chnages has been driven by recommendations as discussed in other straws.

The current price isn't particularly cheap but I think it's a high quality company with a consistent track record of impressive execution.

I hold in RL and will probably buy a little more at the current price.