X, re is there light at end of DWCH tunnel? Answer IMHO is 'yes' (but when?) Based on puny P/S ratio of 0.6 ($18m mkt cap / $30m annual rev for 1996) it's undervalued, but as Paul pointed out, it may feel like watching a pot boil. My familiarity with Monarch for Windows is what drew me to DWCH and DWCH was a nice double for me last year. Catching falling knife this year in 3 1/2 range, or appx 1.0 P/S, has cost me dearly this year. Easy come easy go I guess...
In fact those who bought DWCHW in 1994 when Monarch for Windows was released, your investment went up an ORDER OF MAGNITUDE. In hindsight if you look at DWCH's history, so goes Monarch, so goes the company. So keep an eye on any Monarch news.
In fact, the official press release is out, and this time the company chalked up loss to Quetzal rev shortfall. The lack of synergy between products is obvious. In fact DWCH is more like a Safeguard Scientifics (NYSE:SFE) wannabe and I emphasize wannabe (SFE is a successful tech VC firm which invests in smallcap techs and brings them public), as opposed to a s/w company with one cohesive strategy.
Of their acquisitions, only Personics (Monarch developer) has had notable success, call it a double; Virex (bought from Microcom) has been profitable--call it an infield single; netOctopus investment & results are so small you can't even call it an at-bat. Quetzal's bad results combined with help desk s/w big guys like Remedy & Scopus posting excellent #'s suggest they ate DWCH's lunch. Maybe we'll call that hitting into a double play.
I suspect they will (that is SHOULD!) sell one or more of their software products, hopefully Monarch, which DOES have unique value, and IMHO the most value for the company.
Paul I concur that this thread has been surprisingly civilized in the face of terrible DWCH results. Given that I 'like' the people on this thread maybe we can even expand dialog to other stocks we DWCH casualties also like. Sort of like how Perot supporters kept meeting for bowling, card games, etc. even after he bowed out of prez race :-) |
