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Technology Stocks : New Dimension Software (DDDDF)

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To: Michael Berkowitz who wrote (44)7/1/1997 1:52:00 PM
From: Michael J. Dando   of 209
 
The stock has been moving up very nicely recently, and the formation of the chart pattern on the current run is the best it has been since it moved up in the 9-14 range six months ago. Instead of a couple of frenzied days, where the stock rams way north, then caves in, this time the move has been more textbook, with a nice zigzag pattern on the way up. Lower volume on down days, and higher volume on the up days. All-in-all, it is looking pretty good right here. It would be key if it could break through the 14 barrier prior to the earnings release at the end of July. Last year the second quarter was not real great, with only one cent per share in earnings. That should get destroyed in this year's second quarter, as we have over $7 million in revenues just from the maintenance fees and the half of the DISA contract that is being booked this quarter. With any kind of sales effort at all, we could be looking in the $15 million range in total revenues, and perhaps 19-20 cents in operating earnings. That should pop the stock into the high teens. New Dimension is really acting like a big league company now, and it should really pay off soon.
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