CDW Holdings

[GFG]

"Other operating income mainly comprised of interest income and exchange gain of US$4.9 million arising from the disposal of a subsidiary during the period under review."

Bro BlueKelah, my concern is "other operating income" especially for this quarter has inflated CDW's earnings. Stripping it out, the results do not look that impressive.

My humble 2 cents.

Yes that is a valid concern, thanks for pointing it out, top line has actually gone down somewhat compared to same quarter last year, which means business is getting worse. But could this be just a reflection of poor global economy affecting most companies nowadays?

That's why for now have not added back to position after selling some for profits previously. The valuation is not looking as attractive as when it was at sub 14c levels

Yes, stripping out the extraordinary items, the results are ok. Nothing to shout about, not disappointing either. Pretty much in line with expectations.

One thing to note though is that CDW's operations are in china, and their revenue is in USD (paid in USD)
So going forward, there'll be some tailwind currency help from the recent devaluation of the RMB and the likely strengthening of USD.