Get Trade Alerts

Signup for super-trades.com Free Email List!

Enter your Email


Preview | Powered by FeedBlitz
To subscribe to the Super Stocks Blog by RSS feeder click on :

Subscribe to: Posts (Atom)


Wednesday, April 22, 2009

Why DIT could be and should be a $100+ stock

(It is extremely thin and not for large positions or chasing in my opinion!!!)
DIT is the best kept undervalued stock secret just needing to be discovered. The fundamentals of this company are amazing. I don't think anyone knows about it. By my calculations if you apply the P/E of DIT's competitors, this should be a $100+ stock. In at $32.

1) DIT Basic Shares O/S Approximately 507k Float Approximately 307k See Bloomberg

2) According to this site, DIT is the lowest float stock on all the major exchanges See Low Float Stocks (It is extremely thin and not for large positions or chasing in my opinion!!!)

3) DIT's IBD ratings have vastly improved after this last quarter where they would qualify for the IBD 100 list. Composite is 98, EPS is 98, RS is 96. DIT's EPS is rated higher than GMCR , which is in the same IBD category and was on the IBD 100 after a nice run.

4) DIT generated Cash from Operating activities of $18m and paid off debt of over $15m for the first six months of this year Read Cash Flow Statement in Press Release

5) DIT pays a dividend Read Press Release

6) DIT just reported $2.60 EPS in what is traditionally its weakest quarter See Results

7) ***DIT redeemed the Series C Preferred stock which will reduce fully diluted shares by 146,842 in this present quarter.
“This transaction will reduce our fully diluted share base by 146,842 shares. The full impact of this will occur in our fiscal third quarter,” noted Andrew Plummer, AMCON’s Chief Financial Officer. Read Press release

8) ***For this recent second quarter (traditionally the weakest) DIT had Net Income of $2,096,358 on fully diluted shares of 805,236 for EPS of $2.60. Next quarter with the redemption of the Series C Preferred stock, fully diluted shares will be reduced by 146,842 to approximately 675,000 - 700,000. If DIT did just the same EPS in the third and fourth quarter as they just did in the second the calculation would be $2,096,358 divided by 700,000 = $3.00 per share EPS. This would put them on track for $10 EPS this year or a $12 EPS run rate. Assuming they have zero growth in their traditionally two strongest quarters over their traditionally weakest quarter.

9) ***DIT competitors CORE, NAFC, and SYY all have a P/E of at least 10 See Competitor Stats

10)***$10.00 - $12.00 EPS X 10 P/E = $100-$120



AMCON is a leading wholesale distributor of consumer products, including beverages, candy, tobacco, groceries, food service, frozen and chilled foods, and health and beauty care products with distribution centers in Illinois, Missouri, Nebraska, North Dakota and South Dakota. Chamberlin’s Natural Foods, Inc. and Health Food Associates, Inc., both wholly-owned subsidiaries of The Healthy Edge, Inc., operate health and natural product retail stores in central Florida (6), Kansas, Missouri, Nebraska and Oklahoma (4). The retail stores operate under the names Chamberlin’s Market & Cafe and Akins Natural Foods Market. Company Website

No comments:

DISCLAIMER

super-trades.com is simply a blog that has information on stocks that the author Superman, likes or may trade. The author may, and usually does have positions in some of the stocks discussed on the site or in email alerts and is under no obligation to disclose the size of the position or the time that it was acquired. The author also reserves the right to buy or sell at ANY time before during or after it is mentioned on this site or an email alert, with no notice or warnings. The posts are not at all intended to be recommendations for anyone else to buy, sell, or hold. Investors should not rely on the information given by this site to make investment decisions.


No contributor of the his site is a registered investment advisor or a broker / dealer. We DO NOT recommend whether to buy, sell, or hold securities . Although we believe the information on this site to be accurate, we DO NOT GUARANTEE the accurateness and completeness of statements made regarding stocks discussed on the site or in email alerts.

The performance section provides information to the public on selected stocks profiled by this site. Past performance should not be used as an indicator of future performances. We try the make the past performance section as accurate as possible but DO NOT GUARANTEE that the information is accurate.

This web site and all email alerts sent by this site contain "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as "expects", "will," "anticipates," "estimates," believes," or statements indicating certain actions "may," "could," or "might" occur.

If any part of this disclaimer is not clear, please take the time to consult an attorney or investment specialist. Please take caution in all investment endeavors and good luck to all.

Again, My messages are not investment advice, investment solicitation or the like. Do not take action based on my messages. I do not guarantee or make claims to the accuracy of anything I post. I may buy or sell any securities I mention at anytime, even prior to posting. It is my opinion, that individuals should perform their own due diligence before investing in any stock at anytime and not base decisions on messages posted by other individuals. Individuals should assume 100% responsibility for their own investing. My messages are for my own entertainment only. LOW FLOAT stocks in particular can be volatile and are not for new traders in my opinion. I am not a registered investment advisor in any shape or form, please do not ask me for ANY investment advice.

Welcome to super-trades.com, blog home of Superman. Purpose of this blog is for me to discuss my trades and stock ideas (As well as opinions and rants on stock market related issues). I will mention the date and price I enter. As far as exits, I always try to take half off when I have some profit and if I believe in the stock, let the rest run further. I always also use mental stop limits, at which time I would exit and minimize any losses. I do not like to give price targets unless I can support them by P/E in some way or by comparison to another stock. I just post stock trades and ideas that I believe will go higher (or lower for shorts) and the reason I believe that. Individuals should have their own strategies for managing profits and losses. My stock picks tend to NOT be daytrades at all and many take time to move. I am not an investment advisor and this blog should not be considered or followed as investment advice.