CDWC

**dchamber** Tue Feb 07, 2006 11:23 am

CDWC
What do you think of CDWC?

Their P/E has dropped to 17.
If I assume a conservative growth rate of 14% which is lower than analyst predictions and their 10 year average of 31% I get a 10 year target price of $290 - $310 per share, including dividend.
It is currently trading at 55 which would give you an annualized return of just over 18%. You may be able to get over 21% if they can grow at the 17% analyst recommend but I used a lower number.

The current ratio is 3.5 which more than double the industry average of 1.7.

ROE has never dropped below 16% and average about 22% over the last 10 years.

The book value is steadily increasing and has grown at an average annualized rate of 39% over the last 10 years.

They seem to in great financial shape and I’ve used a conservative growth rate. Am I missing anything here?

**blast_investor** Tue Feb 07, 2006 4:58 pm

I like the business model of this stock CDW Corp (CDWC). They sell computers and softwares etc to government or corporate buyers.

Consumers usually go to Best Buy to buy computers based on price, corporate or government buyers would not go to Best Buy, they buy from vendors like CDWC. This is pretty stable business.

This stock has high return on asset. The stock price is not very expensive, it is fair valued although I would prefer it cheaper.