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Technology Stocks : New Dimension Software (DDDDF)

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To: Michael J. Dando who wrote (78)10/20/1997 2:59:00 AM
From: Elliot Lepler   of 209
 
Michael,
You are absolutely right about the over-reaction to the quarterly numbers. However the earnings are the major determinant of value for a company. Quarterly numbers are representative of the past, but just the most recent past. The trick with investing is to use the quarterly numbers to try and help form a picture of what the future numbers will be.
I also feel very positive about the direction New D is going, and I plan to hold for much higher prices. But when the stock tanked to below $10, I could not resist and added to my position. Well, I sold those shares at $21. So the roller coaster can be to the benefit of some.
My concern for this company has been and remains that the analyst community does not follow DDDDF close enough to generate any recommendations or earnings projections. Without following on the Street the stock will not rise to its full potential valuation.
Last conference call the management strongly implied that we would soon see some brokerage houses begin to cover the stock. But so far no one has taken the plunge.
I have not spoken to the company since Laurie began her maternity leave. If you do speak to someone at New D, please inquire about coverage and post what they say.
Thanks for your great posts on this board. This subject is outstanding for the real information that flows. Too many other boards are full of cheer leaders (Yea! my stock is going up!) or short sellers (Get out of this DOG right now!).
Looking forward to hearing from you again soon,
Elliot
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