Martin Vlcek
Contrarian, growth at reasonable price, macro, small-cap

Dycom Industries Is Fairly Valued And Should Be Bought On Dips

Dycom Industries, Inc.'s (NYSE:DY) stock can be very volatile. It is a cyclical play, strongly dependent on the general macroeconomic climate, particularly the capital investment climate. More specifically, it depends on the CAPEX spending of the major players in the telecommunications and cable operators industries, which is correlated with the demand of the final end-user customers for the telcos' and cable companies' products and services.

For long-term investors who believe in the continuing improvement of the general economic and investment climate, as I do, and in the continuing strong positive trends in the telecommunications infrastructure spending on next-generation 4G wireless networks as well as light-speed optical networks, Dycom Industries is an excellent buy with lots of upside potential....

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