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Technology Stocks : Data Dimensions

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To: Robert E. Bruss who wrote (3453)11/3/1997 9:14:00 AM
From: Staff  Read Replies (1) of 4571
 
Robert.. I think you totally miss the point...
I'm not personally attacking either so I hop you don't take it as such.
You say Thursday will tell who is right and who is wrong.
Nothing could be farther from the truth.

Let me simplify to make a point...
My point is that this stocks price has nothing to do at all with the current earning numbers.... nothing!!!! We are still talking chump change here.

I'll simplify to make my point.

Say you have 12 million shares outstanding and the earning even come in at 25 cents/share. How do you say with a straight face that that legitimatly equates to $30.00 or $40.00 or $58.00/share as some have been touting??

12 million shares x 25 cents/share = 3 million earning last I checked. Does 3 million in earning for a quarter turn DDIM into a company worth 420 million dollars
and going higher?

Here is a company that for all practical purposes should sell at no more than 3 to 5 times earnings if at all. My god the life expectentcy of Arcades evaporates after the year 2000.
Where is the future potential here??
Without Arcades they are a little consulting company that went public at $4.00/share. You sell at a multiple of earnings to take into account future growth... there is none here after the year 2000...zip!!

My point is making 25 cents/ share and making $2.00/share are worlds apart.DDIM said from day one that they expected to do something like 10 cents... then 20 cents... then 50 cents and eventually would return like $2.00- $3.00/share in as little as a few years.

This type of growth is stuff fairy tales are made of Robert. I can count the number of companies that have pulled it off on one hand..
Heck look at Netscape. They have been around for what.. 4 to 5 years and they still have no earnings... still have yet to make a profit... and they control 70% of the browser market in the entire world!!
DDIM has no where near the market share or resources yet everyone touting this mut feel $2.00/ share is all but assured.They made the chump change estimates and can do 10 to 20 cents a quarter. But that does not justify a share price that is 200 times those earning..

Again.. this is pure hypothetical woulda coulda maybe someday right around the corner fairy tale stuff

What is a joke is the fact the street has already presupposed that
because they made 10 and 15 cents, that they are right on target for $2.00.

This is insanity!!!!

How are they going to return $2.00/ share in as little as 18 months is they are scrambling to make 20 cents now?

Again this is simplified but I hope you see the point.
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