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Technology Stocks : New Dimension Software (DDDDF)

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To: Michael Berkowitz who wrote (52)7/30/1997 4:36:00 PM
From: Elliot Lepler   of 209
 
I listened to the conference call. It was extremely positive. Management is more confident than I have ever heard them. They reported a dynamite quarter and expect continuing growth. The 22 cents earnings include a charge of about 3 cents for a tax issue from 1994.

Also very significantly they led me to believe that we will see some analyst coverage very soon. I, as well as others expressed that we need coverage to achieve full value for this company.

Given what I heard, I think that fair value now is at least $25 per share. The company is earning at a rate of about $1 per share per year. A 25 multiple is conservative for a company growing like New Dimension.

I look forward to reading others' comments about the report and the call.

Elliot
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