Sunday, April 29, 2012
Cloud Computing Play - Relatively Undervalued with Strong Earnings
Cloud Computing Play - Relatively Undervalued with Strong Earnings
"Datalink - "Datalink Corporation data center solutions and services to mid and large-size companies in the United States. It engages in assessing, designing, deploying, and supporting infrastructures, such as servers, storage, and networks; and reselling hardware and software from original equipment manufacturers". (Business Description from Yahoo Finance)
"Datalink - "Datalink Corporation data center solutions and services to mid and large-size companies in the United States. It engages in assessing, designing, deploying, and supporting infrastructures, such as servers, storage, and networks; and reselling hardware and software from original equipment manufacturers". (Business Description from Yahoo Finance)
7 reasons Datalink is undervalued at just under $10 a share:
- It is poised to grow earnings at a good clip over the next couple of years. The company earned 80 cents a share in FY2011 and analysts have it making $.92 a share in FY2012 and $1.08 in FY2013.
- The stock is selling at just over 9 times forward earnings, a discount to its five year average (13.4).
- Datalink has a solid balance sheet with over $20mm in net cash (13% of current market capitalization). It is selling at just 43% annual revenues.
- Analysts have it growing revenues by 30% this year and over 12% in FY2013. The company has made several small strategic acquisitions over the last few years which have bolstered growth and filled out its product line.
- The six analysts that cover the stock have a median price target of $12.75 a share on Datalink.
- The company has beat earnings estimates easily three of the last four quarters (it met expectations the other quarter). The average beat over consensus over that time period has been north of 30%.
- Given its small market capitalization (Under $160mm after taking cash out), fast growing sales and position to benefit from cloud computing; this company would make an easy and logical acquisition for a larger player."
Saturday, April 28, 2012
We used to revere scientists. Now we worship Kim Kardashian. Why?
We used to revere scientists. Now we worship Kim Kardashian. Why?
"Even if you loathed foreign movies you knew the names Fellini and Godard. You may not have been part of the literati, but you knew that Iris Murdoch, Edna O’Brien, Harold Pinter, Truman Capote, and Gore Vidal were integral to the groovy, swinging cultural landscape. Even if you loathed opera, you knew and respected Maria Callas and her commitment to her art, to mention nothing of her commitment to dramatic black eyeliner and swallowing a tapeworm to get thin, allegedly."
"Even if you loathed foreign movies you knew the names Fellini and Godard. You may not have been part of the literati, but you knew that Iris Murdoch, Edna O’Brien, Harold Pinter, Truman Capote, and Gore Vidal were integral to the groovy, swinging cultural landscape. Even if you loathed opera, you knew and respected Maria Callas and her commitment to her art, to mention nothing of her commitment to dramatic black eyeliner and swallowing a tapeworm to get thin, allegedly."
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