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  • DataLink Corporation: A Gold Mine For Long-Term Investors With Vision 0 comments
    Jul 15, 2014 9:05 AM | about stocks: DTLK

    History is perceived in wildly different ways. For the majority, it is an indelible impression of past events, while for some unlucky few, a painful reminder of past mistakes. In the context of investing, history can be perceived in both these ways and, in addition, as a crystal ball for those with the vision. DataLink Corporation's (NASDAQ: DTLK) bull case, as we will see, validates this postulation.

    DataLink recently announced that it had climbed to number 47 on CRN's just-released 2014 Solution Provider 500 list of the top technology integrators in North America by revenue. In contrast, the provider of data center infrastructure and services was position 195 when it made its first debut in the prestigious CRN list five years ago.

    The intriguing element is not the definitive progression in CRN rankings over the past five years, but a duplication of the same on the stock market over the five year period in review. Over the past five years, DataLink's stock has risen more than 133 percent. Incidentally, it has managed to progressively rise up to the top percentile of tech integrators by revenue in North America over the same period, signaling a correlation.

    Bright future

    Going by the trend witnessed over the past five years, the probability that DataLink will continue in its encouraging trend is high.

    DataLink CEO Paul Lidsky has previously intimated that the company plans to drive sales past the $1 billion mark through mergers and acquisitions of smaller companies with annual sales in the $60-$120 million neighborhood.

    While DataLink's sales are still wide off the targeted $1 billion mark, the trend over the past three years signals that sales are slowly tending toward the target. Moreover, operating results for the first quarter of 2014 indicate that sales will continue trending upward in 2014, allowing the provider of data center infrastructure to inch closer to its sales target. Revenues for the quarter ended March 31, 2014, increased 5 percent to $139.5 million compared to $133.5 million for the quarter ended March 31, 2013, according to a company press release.

    If recent history is anything to go by, DataLink will continue to soar going forward. While there will certainly be a few downward swings along the way, DataLink is a stock that should trade significantly higher than it is another five years from now. As things stand, it has declined 11 percent year-to-date. This signals a great entry point for investors looking to win it big in the long haul.

    Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: DTLK
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