By: rick-mooney on Nov. 27, 2018, 9:41 a.m.
Hey Claude, just a couple of thoughts on your DDR piece, firstly the risk of a move to BYOD is somewhat mitigated by the fact that the retailers have to buy from a distributer, so if there is an overall significant move to BYOD a company like DDR will lose some direct corporate clients and then pick up some new sales through the retailers.
Second point that is worth noting with DDR is the quarterly divvies, that can be a plus for those investors in the retirement phase.
Finally my two big concerns with DDR (despite it being one of my largest holdings), as you mention the debt incurred by the recievables facility, but as I have talked with you on twitter, DDR management are adamant this strategy is best for the business and given the track record its hard to argue! The second one is that as someone who runs an IT business and has accounts with a number of distributers, I simply dont understand why anyone uses DDR! They are more expensive and dont give free freight to retailers. As a shareholder I would prefer to push my business their way, but I have never ordered through them because the cost to my business would be unsustainable.
I have never really found a way to get comfortable with this personal insight into the business, other than to accept the hard numbers which show revenue of over $1b so someone is buying from them!