First I want to state that I'm no DDIM Cheerleader. I shorted at 25 1/4 and got out at 21. I believe that DDIM will eventually have a spectacular crash. However, doesn't it worry you at all that they're about to announce financials for a quarter with a very low concensus estimate (.02) after obtaining in that quarter contracts that nearly total all of last years revenue? The question is not whether DDIM can justify its valuation this quarter. No one, not even the bulls, expect it to. It's valued on expected future earnings. All they have to do is fuel the fire with a half decent earnings surprise, which they've managed in the past (accounting tricks or no accounting tricks). If they post $.03, boom, they've exceeded analysts expectations by 50%. I would never short DDIM right now. You'd have better odds in Vegas. If I'm wrong, and I miss the great shorting opp that's sure to arise in this stock, kudo's to you, Jalai, and all the other shorts. But I have a problem with betting on even odds, and I'm afraid that's all you have here. Next Q, and the subsequent Q, are different stories. The unjustifiable earnings forecasts for DDIM are still to come. I think they can hit the current desired numbers. Good luck, anyway.
Chimi |
