Dycom is off from about $90 to $60 during this sell off. Not atypical for a growth stock in a downturn.
http://stockcharts.com/freecharts/gallery.html?dy
They have an easy to understand business with solid customers. They lay cable, connect it and install it for large carriers like ATT, Centurylink, etc. These carriers are trying hard to catch up with Verizon’s large fiber network, and as we download more and more data, the networks must get bigger. Who knows, they might even install or at least connect to INFN equipment in central offices and data centers.
Cramer mentioned the other night that the carriers are strong and their revenue sources are not going anywhere. And don’t forget the big Gov subsidies to give rural America high speed internet.
“Our” spreadsheet shows a 1YPEG of 0.13. Yahoo PE is 23, but the spreadsheet shows YoY EPS growth of 153%. Do you think the carriers are going to stop laying cable because oil crashed or the dollar is high?
other than the distribution rating, the IBD ratings are pretty strong…
…Checklist…Rating
Composite Rating 96 Pass
EPS Rating …99 Pass
RS Rating …95 Pass
Group RS Rating …B- Pass
SMR Rating …B Pass
Acc/Dis Rating …D- Fail
They will never grow into Europe or Asia, but a good, solid business, unaffected by the dollar and with petty solid growth prospects. Decent diversity from other holdings on this board.
Just my monthly reminder of what you are missing 