A Diamond in the rough - Diamond Management

On Financial Tides we've covered this stock before but Diamond Management and Technology Consultants ( DTPI ) just keeps popping up on my new high list. They are a global management consulting firm that helps leading organizations develop and implement growth strategies, improve operations, and capitalize on technology. Mobilizing multidisciplinary teams from highly skilled strategy, technology, and operations professionals worldwide. Diamond works collaboratively with clients, unleashing the power within their own organizations to achieve sustainable business advantage. They are headquartered in Chicago, with offices across Europe, North America, and South America.

The recent and consistent price momentum deserves a new look. The stock continued to hit 12 new highs in the last 20 trading sessions including 4 in the last 5 days. The stock appreciated 21.05% compared to a loss in the Value Line Index of 8.54%. I use the Value Line Index as my benchmark because it contains 1700 stocks making it broader than the S&P 500 or much narrower Dow 30. Barchart's technical indicators have 12 buy signals out of a possible 13 giving this stock a 96% technical buy score. It trades around 10.40 with a 50 day moving average of 8.73.

Price movement without increases in sales and earnings is meaningless and Wall Street analysts think the company will increase sales 22.40% this year and 12.90% next year. Increases in earnings per share are also forecasted to be a 22.70% increase this year, 22.20% next year and 17.50% a year for the next 5 years. I like double digit estimates of sales and earnings increases. Wall Street has published 4 strong buy recommendations.

The stock has a very positive following on Motley Fool with the CAPS members voting that the stock will beat the market 149 to 4. The more experienced All Stars agree 53 to 1.

This stock continues to ring my bell and I still think it's not too late to get in. The positive points are:

• Recent and consistent upward price appreciation
• Barchart technical buy signal of 96%
• Wall Street forecasting double digit increases in sales and earnings
• A very positive investor sentiment

Jim Van Meerten is an investor who writes on financial matters on Financial Tides. Please leave a comment below or email JimVanMeerten@gmail.com

Disclosure: No position in DTPI at the time of publication