Negative enterprise value.

AI Summary

Author argues DDI trades at negative enterprise value with strong cash generation, making buybacks attractive.

DDI — LONG The author argues DDI trades at a negative enterprise value because its cash exceeds its market capitalization, and it routinely generates $20-$25m per quarter. They believe buybacks at this price would be the most sensible use of capital versus other acquisitions, and that the end of the prior public float issue from the private equity sale could unlock action. The main stated uncertainty is why management has not yet acted, but the author is positioned long.

It seems really healthy, and they have more cash than the companies worth, and therefore the negative EV. They routinely bag $20-$25m a quarter. It's almost irresponsible not to do buybacks at this price

Score 4

Comments 4

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u/Embarrassed-Paper165 Reddit r/ValueInvesting

Negative EV, cash-rich DDI ripe for buybacks

The author argues DDI trades at a negative enterprise value because its cash exceeds its market capitalization, and it routinely generates $20-$25m per quarter. They believe buybacks at this price would be the most sensible use of capital versus other acquisitions, and that the end of the prior public float issue from the private equity sale could unlock action. The main stated uncertainty is why management has not yet acted, but the author is positioned long.

This Reddit post, published February 12, 2026, features u/Embarrassed-Paper165 discussing DDI. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/Embarrassed-Paper165 · Tickers: DDI

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