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Strategies & Market Trends : Value Investing

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To: Bob Rudd who wrote (7309)	6/21/1999 4:26:00 PM
From: Bob Rudd	Read Replies (1) of 78666

ERP fans...DACG: Took a small position in this software training firm after it fell from grace due to bad quarter and ugly rest of year outlook. Originally a thread visitor made a technical recommendation at 12 or so. I expressed concerns about cash flow from operations diverging from income due to receivables. Well those chickens have come home to roost big time and after the negative earnings announcement DACG now trades a bit above 5. I listened to conference call and got indications they expect to remain slightly profitable rest of year...probably about .25 for 99. But things should look much better in 2000. Prior to announcement they were expected to earn 1.00 and 1.27 for 99 and 2000 respectively with an expected 5 year growth of 27%. Forget about 99 and discount the 2000 and growth by 25% for optimistic indication. My reason for buying: Fast forward one year to mid 2000. DACG is on track to earn about $1 per share with 20% growth rate going forward and trades at $20 plus in recognition of this. That's the upside. The downside...lot's of "buying opportunities" may yet be seen as y2k delays ERP projects for the next 6 months or so. If you have ERP stuff like SAP, you know what this is about. SAP has already bottomed, but more bad news may lie ahead. I expect to add to this position as bad news comes thru. biz.yahoo.com Comments...?

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