Puddin,
Are you there? I’d have to think you are salivating at the opportunity to buy DY today at $55.33. After your recommendation, I’ve been following DY, but have not made an investment. I researched DY after their earnings in late November. It looked good then. This looks like a great time to buy excepting further market turmoil.
Here are some stats. If management’s guidance of 56 cents is correct, that will give them an EPS growth rate of 114.7%. Their current PE is 18.1. If guidance is correct, that PE shrinks to 16.5.
After they reported earnings, the 1YR Peg was 0.19. Today, it is 0.12. When I was researching DY before, the stock price was $88.91 sporting a PE of 29.05.
I tend to believe DY will continue to grow over the next several years at a decent clip. What risks lie out there?
Thanks,
A.J.
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I’d have to think you are salivating at the opportunity to buy DY today at $55.33
Sure, I got a great deal at $63 too 
So I will let the dust settle. I am thinking I would rather miss the next 10% than get the next 20% down. I am sure I won’t be able to resist soon. Yellen will say all hikes are off and the market shoots up squeezing shorts - what will I do. Anyway.
I tend to believe DY will continue to grow over the next several years at a decent clip. What risks lie out there?
I think the biggest risk is the market, and that is not a small one. People are selling their growth funds and the fund managers have to dump, they don’t have the luxury of buying at these “great” prices. Hedge fund managers may be getting redemptions and throwing the babies out with the bathwater.
The big carriers and also the medium carriers are their customers. They seem to have plenty of money to spend on CapEx. Their teenage and millennial data hogs are not cutting their data plans because small oil companies might go bankrupts and drag some banks with them. But might the carriers panic? Sure, but I think they see past the short term economics and see lots of bandwidth needs (which is of course good for INFN and ANET). They are already behind FIOS and need to catch up. Google Fiber is breathing down their necks and digging plenty of ditches of their own.
They do have competition, but when you have good long term relationships, you garner trust so I don’t see much pie stealing, just the pie getting bigger or stronger. No way China is going to steal business by shipping over a boat load of fiber layers.
More and move video streaming, that the pie grower. Police cameras uploading all the time, Periscope, etc. ESPN is advertizing that you can see anything on the net if you can see it on cable. And of course this every year Don’t have a TV? You can still watch the biggest event of the year online: CBS plans to live stream Super Bowl 50
I am biased toward the outlook, so maybe someone else can chime in to say how blind I am before I buy more when it sinks to $50.
- Your favorite drunk uncle
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