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Technology Stocks : Data Dimensions

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To: Sondo who wrote (2823)8/22/1997 10:21:00 PM
From: hasbeen101   of 4571
 
>> DDI is acquiring Pyramid Information Services Inc., of LA, for $19M in cash and stock.

This deal shows how risky it is to go short DDIM for the long-haul.

If someone believes that DDIM shares are hugely overpriced (I do), then it gets really interesting when they can use these shares to purchase real companies with real earnings. The more you believe the shares are worthless, the more you should be worried by deals like this, since DDIM is effectively buying "something for nothing".

You have to hand it to Larry Martin, he's playing this game very cleverly.

Neither long nor short, I still think DDIM is overvalued, but with deals like this, its value is almost impossible to predict.
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