Now to the stock and your investment advice:
* You gloat when you've finally picked up a few bucks on the short side. Assuming the shorts sold at the alltime high of $24-26 recently, (and never tried earlier), they could have covered at $20-23...and that's great. Going short for quick little hits based on tech factors is fine...as long as they know the risks. They are gambling to snare two or three bucks, while the longs are tripling and quadrupling their holdings. This stock is up from $14 to $69, and you pick now, the brink of the Ardes sales, Y2K awareness and douubtlessly increasing DDI business to step in front of that freight train. I like being a contrarian, but whew. There are so many real scams on the mkt, but you like this one, Unisys' partner in a booming industry.
* The shorts may be right that, unlike Viasoft, a $1B market cap for DDI is extreme. The market seems comfortable with it at $200-250M. The shorts may be right, but there seems to be ample room in between. How much will DDIM investors make if at the peak of Y2K, DDI is only worth $400M?
* Favorite posts recently have been:
4/9: "DDIM's down to 19 1/2 and falling fast like butter waiting for a hot knife!" (The stock closed at $20 7/8.)
4/14: "...only small 100 share trades on the uptick." (The stock closed up 1 7/8 on 202K shares.)
4/14: Some guy quoted another guy on another board, ZITL. If we're quoting other sources on the Net, maybe you'd prefer this one...www.unisys.com/marketplace/Year 2000/srvsprod/milass.htm. Unisys describes its program to assess 5M+ lines of code for clients, with its partner, Data Dimensions.
This is about a good company in a booming industry. But short away...
To summarize, a short against DDI is a bet against Wall Street, Unisys, the Federal Government, the Y2K crisis and momentum in general. The most you can make is 23 bucks, which is not the limit and has never been the limit for the longs.
The shorts must be very sure of their facts...they must be looking ahead at the potential with Unisys et al, rather than behind and at these silly conspiracy theories.
When it all comes down to making cold hard cash in 1996 and '97, the shorts have taken a bloodbath time and again. But they hope their luck will suddenly change! All those conspiracies and scams...Unisys and Deloitte have been duped...and the company is spending all that money for no reason... |
