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Technology Stocks : Data Dimensions

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To: craig crawford who wrote (1973)7/1/1997 1:17:00 PM
From: Jalali   of 4571
 
>>Steve Angelo, vice president at Reasoning, agreed. "There are only about 650 working days left until the [Year 2000] deadline,"<<

Crag above taken from your referenced article.

Let's do the numbers:
DDIM market cap is 12M x $23 = $276 Million
Assume 20% margin on sale (very high for consulting)
$276M/ 20% = $1.38 Billion in sales
$1.38 Billion/ 650 days = $2.1 Million/day
$2.1 Million / $1000(consultant daily rate)= 2,100 consultants
DDIM has maybe 125 consultants now and needs to increase its staff by 17 times over night to have any chance of earnings its market cap. IMPOSSIBLE! Just to get your money back, no return.

Jalali
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