Q: Why is Dynacor such a dog?Thanks.
5i Research Answer:
It's tough to nail down. While its small size is a factor, it is debt-free with $36M cash, pays a high dividend of 3.46% (raised last December), trades at only 8X earnings, and has three analysts (average target $8.12). Insiders own 9%. Cash flow was not great in the trailing 12 months (negative $3M) but Q3 results beat estimates and estimates have been ticking up. Still, even with 23% revenue growth profit fell in the quarter by 7.1%. It has been a value trap but does not seem so bad to us. But it needs some kind of catalyst to attract more interest.