Q: Could you provide an update on Data Communication Management including its cash on hand and insider holdings/recent activity. Is the debt still high. Also what would it take to get some upward momentum on the stock. Thanks.
5i Research Answer:
DCM had $20M cash and $252M debt at the end of the most recently reported quarter (March 31). Insiders own 24% and have been small net buyers over the last six months. It reports earnings tomorrow so we may get updated figures. The stock will move with better earnings growth, lower debt, or more acquisitions. We think it is well-managed, but it is still quite small and needs to be considered higher risk. The market has ignored small caps for some time. But we would like to see lower debt here, certainly.