The best and worst performing shares this week


If you've bought a new PC or other computer gear from a local retailer, chances are it got to you via Dicker Data.

Branding itself as Australia's most trusted IT distributor, Dicker Data has skyrocketed since the low of July 26 as its share price is up 28%, with more to come.

The stellar growth of Dicker Data is positive as it has managed to offset losses from other declining segments by diversifying its products and services.

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This has protected the company somewhat from market volatility as they now offer everything from software integration, project and server management, and networking among other services.

What did we learn about Dicker Data during reporting season?

Looking at the numbers, the company has recently reported its half-year earnings are up 15.40% while net profit after tax is up 9.40% compared to last year's half-year results.

There is no question that, as a society, we are not only reliant on technology, but it also plays a big part in our everyday lives.

Dicker Data recognises this and has been actively expanding its business with the recent acquisition of Hills Security and IT and Connect Security Products Ltd in New Zealand. No longer is it considered just a supplier of computers or new hard drives; it's more diverse than that.

The technology sector has been the most bullish in the Australian market this year, and until recently, Dicker Data has lagged behind the sector. But they now have the foundations for the next growth stage and will outperform the market moving forward.

The share price has hit key resistance at around $10 and is showing short-term weakness. While I don't believe the resistance is significant, you must be mindful that the market and stocks have been subject to unpredictable volatility.

While only time will tell what direction Dicker Data will take, I believe this is a stock to put on your watch list as an opportunity to take advantage of in the not-too-distant future.

What are the best and worst-performing sectors this week?  

The best-performing sectors include Utilities, down just under 1%, followed by Consumer Discretionary and Consumer Staples, down more than 1%. The worst-performing sectors include Energy and Information Technology, which are down more than 4% and Materials, down more than 3%.

The best-performing stocks in the ASX top 100 include the ASX, Newcrest Mining, and Fisher and Paykel, as they are all up more than 2%, followed by Nine Entertainment Group, which is up just under 2%.

The worst-performing stocks include Block, down more than 12%, followed by Pilbara Minerals, down more than 11% and Allkem, down more than 9%.

What's next for the Australian stock market?  

The roller coaster ride in the market has continued as the All Ordinaries Index has reversed the direction again compared to the prior week. Since the end of July, the Australian stock market has pretty much been a story of one week up and one week down.

That said, the bears have been more aggressive over the two weeks, one of which is this week, with the market down nearly 3%.

Given what has transpired in recent months, we may see this type of volatility in our market continue over the short term, which means we can expect further falls.

Despite trying to be more positive in the bullish weeks, I have continued to warn investors that we needed to be prepared for a fall down to around the 7000-point support level.

This now looks more certain, and I believe this will occur soon, after which we will experience a sustained bull run. As I continue to say, anything is possible in these current conditions; therefore, you need to be patient, and if you hold good stocks, ensure you have an exit strategy.

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Dale Gillham is chief investment analyst at Wealth Within Limited (AFSL 226347). He also serves as the head trainer at the Wealth Within Institute (RTO 21917). He has more than three decades of experience in the investment industry, and is the author of How to Beat the Managed Funds by 20%, Dale's qualifications include an Advanced Diploma and a Diploma of Share Trading and Investment. He co-hosts the Talking Wealth Podcast, and his work has appeared in The Australian Financial Review, New York Business Journal, Wall Street Select and more.