Posts Tagged ‘DTLK cheap valuation’

DTLK – Buy Recommendation

By: ispeculatornew | Date posted: 12.02.2007 (2:59 pm)

DTLK – Datalink (Nasdaq) (Closing price on Friday, 11/30/07 – $4.29)

Datalink has had a couple of rough quarters since my initial recommendation but the company returned to profitability last quarter and gave decent guidance for next quarter.

In Q3 of 2007 Datalink reported revenue of 45.9 million and earnings per diluted share of $0.07. Revenues were up sequentially and Datalink reported its first profit since Q4 of 2006.

For the upcoming quarter Datalink gave guidance for revenue between 47 and 52 million and EPS between $0.06 and $0.11. Datalink reported that their backlog was down to 25 million from 30 million in the previous quarter. However, the CEO stated he was “cautiously optimistic that we will see more aggressive storage spending … as many of our customers take advantage of the availability of year end budget dollars”. (more…)