I listened to the conference call and read through the transcript, other than cost cutting (firing people) there was little positive information provided by management. Management did indicate they consolidated 2 facilities that should provide some margin but that’s it.

Management typically pulls every sale that’s not bolted down into the 4th quarter for year-end; the first quarter 2010 is going to be another decline. Many of DCI’s markets are late recovery markets so they will not improve until later in the recovery cycle.

Management is forecasting the first half sales to be flat to Q3 and Q4 2009. That means any improvement or growth will not occur until the second half of 2010. If that’s the case then 2010 earnings forecast is a hockey stick and back loaded so investors will not see any improvement until late in the fiscal year.

This stock is going nowhere in the next 3-6 months on its performance. This stock will cycle to somewhere between the mid to the high 20’s.

Buy on the dip.