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Paul is a stock investor with an accounting/finance background. He likes to look for value growth stocks and momentum news plays. He is also known as Superman on Twitter @super_trades and his blog is www.super-trades.com (http://www.super-trades.com).
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  • DIT now rated 99 EPS by IBD (Updated this Weekend) 0 comments
    Apr 26, 2009 3:45 PM | about stocks: DIT

    * DIT's IBD #'s have been updated and it now has the coveted, stellar IBD EPS 99 rating. RS is 97, and Accum/Dist A . All are Best in Group which includes GMCR. DIT is now above GMCR in its IBD group and GMCR has been on absolute momentum run all year from the $30's to the $50's. With an uptick in volume, I believe DIT is a candidate for a similar momentum run and in turn, the top of the IBD 100 List.

    * DIT generated 18m cash flow from ops in 1h 09 and paid off 15m debt (another 5m debt comes off this quarter for sale of disc ops) and 2m preferred stock redeemed which REDUCED diluted shares o/s by 146k to 704k.

    * If you take DIT's 2008 net income by new diluted share count it is $8 EPS.

    * If you take 1H 2009 net income (traditionally weakest quarters) by new diluted share count it is $4.98

    * DIT I get an $10-$12 EPS run rate for 2009

    * Competitor CORE has 15 p/e on recent analyst target ($30 target - $2 EPS Estimate)

    * DIT has a 330k float lowest I can find on on any major exchange 550k o/s

    * Conservative management

    Thin stock and volatile. Can be dangerous and not for large positions in my opinion. However, if hedge funds and value investors discover it, with this share structure we could be in for a GMCR type ride or more. It could double and I could argue it is still undervalued compared to CORE based on the numbers.

    Stocks: DIT
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