Robert,
In the case that you should return to DLGC anytime soon, I just wanted to try to clarify myself. My main point was to counter the large amount of posting calling for a buyout or management change. I believe that a lot of this was due to frustration of having lost money on DLGC.
I too have lost a large sum of money in the market, on the first stock I bought. I watched for months, when the time seemed right, I put my life savings in to the stock. Within one month, I was out 12K. The particular stock - CGRM - has yet to recover. WHat really irked me was the insider trading article that showed the CFO dumped all of his shares about 3 weeks before the slide. I can only be thankful that I did not make a margin purchase, or else I would have lost $22K. I thought that I would earn a down payment on a house. Ha Ha. I did not have enough left to make down payment on a house in Iowa, let alone San Jose. My point is that I do not want to come off as condescending towards your loss. The shorts made a killing off of DLGC (and CGRM 3 years ago), and somebody had to pay the price. Unfortunately, for both of us, the price of tuition on this lesson was very steep. I learned two very painful investment lessons. 1) Best Technology does != best investment. And 2) Never put more into a stock than you are wiling to lose. I have picked a few winners since then, but I still have a lot to learn about investing.
In regards to DLGC employees, as an employee, I would be more willing to risk money on a stock as I have insider knowledge of the company. I am in a situation similar to DLGC employees. My company stock is depressed. The shares I own, have lost 15% of value, and my employee options are worthless. However, I have confidence inthe company, and I am not anxious about this investment. Similarly, DLGC employees have good knowledge of the products in queue, and the overall direction of the company. I would expect the wisest of them to either hold on to DLGC expecting big returns, or to cash out and change employers. As an employee, having a depressed stock is not always bad. If you have confidence in the company, then depressed shares offer the employee cheap options, and cheap purchase plan shares. In shoort, a tremendous opportunity to make money. |
