Aside from a solid earnings report last week the company announced its first buyback since 2002; and has the potential to buy up 15% of its shares. While buybacks are always iffy as they indicate a company "could" buy back its shares; it is never a bad thing.
From its earning report:
"Diamond Hill Investment Group told investors Thursday its second-quarter net income soared 76 percent and its assets under management jumped 67 percent.
The Columbus-based investment manager said its profit for the three months ended June 30 rose to $2.4 million, or $1.05 a share, from nearly $1.4 million, or 62 cents a share, a year earlier.
Revenue advanced 66 percent to $10.4 million in the quarter from $6.2 million in the same period of 2006, while assets under management jumped to $4.5 billion from $2.7 billion a year earlier."
So the company appears to be hitting on all cylinders and after a huge run from $65 (Nov 06) to $115 (Feb 07), the stock had gotten ahead of itself and suffered a steep pullback, drifting down to the $80-$85 range this summer, before a plunge last week to the low $70s.I had bought 200 shares @ $71.39 - I will most likely be adding to my position once the stock clears resistance levels, as it currently trades below both its 50 and 200 day moving average (in mid $80s)
No position
