Datalink is up 6% since I originally recommended it and there haven’t been any developments since my original recommendation. However, Datalink is set to report earnings on February 7 and I am going to give you my opinion of what you should expect.

In each of the past four quarters Datalink has either matched or beaten the high range of its earnings guidance. If the trend continues Datalink will make at least $0.16 this quarter which would be a great quarter. It would be an improvement of six cents over the comparable quarter last year and an improvement of five cents over the preceding quarter. If Datalink makes $0.16 and gives decent guidance I expect the stock price to trend back up and retest its high ($12.50) for the year.

If Datalink only makes $0.11 (the low end of its guidance) I expect Datalink to continue to trade around its support in the seven dollar range. The stock has lost 40% of its value since it made its yearly high and the stock seems to be pricing in bad news. I don’t expect Datalink to drop unless it misses the low end of its guidance.

Disclosure: I currently own shares of DTLK.