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Strategies & Market Trends : Three Amigos Stock Thread

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To: Cary C who wrote (1445)	3/5/1998 10:32:00 PM
From: Amigo Mike	Read Replies (2) of 29382

Why are the Amigos so high on boring old DHI ???? Check out these details: DHI has a $339,000,000 backlog, and Dobson (recent acquisition) had a backlog of $48,000,000. In last report, CON reported $304,000,000 in backlog, giving a total combined backlog of $691,000,000 for the merged company. YIKES !!! =) There will be less than 15 million shares issued for the CON merger. DHI will get the lowest conversion rate as a result of the high average price recently. The combined company will have ~52.5 total outstanding. More than 65% will be owned by institutions and insiders by our calculations. =) The merger with CON is complementary. The combined companies own real estate from the Mid Atlantic to Southeastern to Southwestern US in some of the MOST prime areas. The combined companies should easily be able to take advantage of economies of scale. Cut cost of administration .... retain high quality mgmt team. Favorable interest rate environment fueling the new homes marketplace. By our calculations ..... the combined company can earn at least $1.55 per share FY 98. With a reasonable PE of 20 .... DHI is worth $31.00. DHI will be a monster !!! We believe $31 is conservative. DHI should command a premium as an industry leader. Amigo Mike

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