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Technology Stocks : Data Dimensions

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To: TA Trader who wrote (2812)8/21/1997 2:36:00 PM
From: nonzeroa   of 4571
 
<<DDIM will do over 50 mm this year>>? DDIM has only done $15.7 mm in the first half. Even in the second quarter, DDIM only did $9 mm in revenues, a $36 mm run rate. I think its almost impossible for DDIM to do $50 mm in revs this year.

However let's use $50 mm for comparison: KEA has 12.5x the revenues of DDIM but only trades at 4.8x the price.

I didn't use P/E comparisons in the last post, but they are even more compelling; KEA generated $20.9 in profits in the first half vs DDIM's $1.09, 19x more (and KEA didn't need to capitalize expenses, like DDIM did).

<<DDIM may do $150 mm in 1998>> I have no idea how you can justify this. As I stated, in 1996 215 DDIM employees generated avg revenues of $69,000 each. To generate $150 mm, DDIM would need 2,173 employees! As they have only increased from 215 employees to 290 employees from 12/31/96 to 6/30/97, I find that impossible. I still think DDIM is a strong SELL.
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