The market value of indigenous distributor Dicker Data has soared by almost 73 per cent since the start of December, on the back of unusually high volumes.
The company’s shares rose to a record high of $0.89 today before easing back down to close at $0.80. The stock was trading at just under $0.50 early last December.
Over 210,000 shares changed hands today, compared with a three month daily average of 29,000 shares, which is significantly higher than the comparable period last year.
The company’s stock is tightly held, with CEO David Dicker owning just over 50 percent and his ex-wife Fiona Brown holding 44.47 percent, according to Morningstar.
The company is yet to explain the increase in share value for a stock which largely traded in a tight band of between 40 and 50 cents prior to this latest run. The company has not received a 'please explain' request from the ASX.
Dicker Data listed in January 2011. Since 2010 the company has grown net profits from $4.5 million to $8.28 million on the back of an increase in revenues from $286 million to $456 million.
Last year the net profit margins also increased from 1.6 to 1.8 percent, while shareholders enjoyed a strong increase in the payout ratio from 60 percent in 2011 to 83 percent last year.
While the increase in Dicker Data’s value is unusual in relation to the current market - which is up only 9 percent over the comparable period - the stock has experienced sudden leaps before.
The current increase pales compared to the 40 percent spike it experienced on the 24th of June 2011. That increase was attributed to positive guidance provided by the company, according to a report in the Australian Financial Review at the time.
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