RE:RE:RE:RE:RE:RE:LOOK LIKE DCM LOST SOME OF IT'S MOJO
zalmonella wrote: I already have more shares than I need.
It will run up in advance of earnings, probably starting around the end of January. Sell some then - y0ou know the earnings won't be anything lightning so it will drop back. Then you can buy back again after earnings and reduce your CCA. I've seriously reduced my exposure in the surprising Santa Claus/New Year's rally and only have about 20,000 left, but will likely do the same things, assuming nothing better comes along. DCM has a small but predictable cycle, and one should take advantage of it. It's a good company but not an outperformer.
I think this Q4 and Q1 will be much stronger than the last Q4 and Q1. I would not "play it" the same as last year. Management teams don't often spend a lot of time marketing their company's stories (like DCM just did)...to show "OK" results. I think combined, we can see $20 million in EBITDA in the next two quarters. Best part, as per their investor presentation, there will be very little restructuring costs.
DCM will repay $12m of debt per year. That's equivalent to $0.25/share...or 20%. FCF will likely exceed debt repayment. And we will likely also see multiple expansion...so there are lots of ways to make money in 2022...