Congrats on DIO. I once looked at it and passed. Seemed too small with no rev. growth. Looks like they are growing fast now though. And you were right to buy.
In my opinion their stock looks cyclical; a couple of times in the past, when the stock has run, it's run higher than the current price. So I wouldn't be surprised to see a 50% increase even from today's new high price.
For me, I'm not able to discern if DIO, or any of these related discrete-component companies, is now a buy based on value criteria. It looks like DIO is, but I hesitate here because so much good news is already public knowledge - the stocks all seem to have made big moves. AVX, KMET (which I own), VSH. And in the past week, the distributor stocks have astonished me with their run up (AVT, ARW). (Aside: -g- Come on SEMI. Where are you SEMI?). For me, I just find it difficult to come into a position after a move is well underway.
If I owned DIO, I'd hold it. If I were to consider establishing a new position, I'd want to clearly understand why I'm buying into the industry now and why specifically DIO.
JMO, I've been wrong before on DIO, and very easily could still be wrong.
Paul Senior |
