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Strategies & Market Trends : Roger's 1997 Short Picks

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To: Bill Morel who wrote (5694)10/7/1997 8:44:00 PM
From: Eric Klein   of 9285
 
1. The estimates are unlikely. DDIM reported $.07 last quarter, but the CFO quit (wonder why). They were slated to make $.20 this quarter, but this was quietly revised down to $.13. There's some question if they can make (or even pretend to make) even this lower number. They won't make the '97 yearly numbers $.62 IMO.

2. Even if they made the '98 year, the whole y2k problem goes away on January 1, 2000. Cinderella's gown turns back to rags. Basically this company (and all the other y2k companies) have to earn their money (market cap) before then. So a forward P/E of 14 is not really very good.
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