Replies to post #37 on Dycom Industries Inc (DY)

[OldAIMGuy]

Here's how the DY holding has behaved with inventory management of shares
since Sept of 2019.


(Price/Share up 28.6% since the Start; Account value gain 50.5%; Cash Reserve up 195%)

Stock selection is important but I feel inventory management and risk
control is also. First came the completely unexpected decline related to
the Coronavirus outbreak. I'd set aside about 25% of total at the start
for downside averaging should the price decline first. That proved to be
fortuitous. I bought shares to exhaustion of cash during the decline.
That cash and the buying it allowed led to a 52% increase in total share count.

As the image shows, from the time the price bottomed out a year ago to
the first sale at the end of May, 2020 the value at risk grew a bit.
However, after that, the value at risk remained nearly constant and
share inventory was trimmed as the price/share continued to rise. The
last sale was at just over $100/share.

With a discount of around 30% from that last sale I added 12% more
shares back to the holding using some of the accumulated reserve of
cash. If DY continues to decline I can continue buying back inventory.
Should DY turn back upward and the cash proves to be not needed, I can
always take some of it and start something new as an investment.

Best regards,
OAG Tom