It's been in the doldrums the past few years as the 'reseller' and traditional IT business has been on the decrease, so have Data #3's margins.
The business is 30 years old and goes back to the early days of IBM's PC.
However Traditional IT services (selling hardware and software) is now moving aside and makes up 80% of revenue (and dropping). They are moving into Services and more modern forms of IT such as Cloud, Wifi and Consulting. This has much higher margins, and the best part is the fact that they have the network from the $830m in revenue countrywide.
Also, the fact that they are still only on a market cap of $121m means there is plenty of room for growth.
They paid a 6.5% yield in a BAD YEAR. They have a payout ratio of 90%.
Why aren't people excited by this??
DTL Price at posting:
78.5¢ Sentiment: Buy Disclosure: Held
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