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Technology Stocks : Data Dimensions

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To: Hawkmoon who wrote (4128)1/26/1998 9:12:00 PM
From: Eric Klein  Read Replies (2) of 4571
 
Given that DDIM is priced at approx 15 times expected earnings of around $1/share, I would think that you are about to be slapped by a bit of reality.

1. DDIM will be very lucky if they make $1.00 next year. Quarter after quarter the analyst's estimates are downgraded. They will even have trouble making this year's number of $0.38. Remember that they will have to be audited this quarter. A lot of their recent accounting fails the smell test.

2. Their whole business goes away early next year. Thus they should sell for a considerable discout versus the rest of the market. A p/e of 15 means that the company can earn it's market cap over 15 years. If your business goes away in 2 years, you should hgave a market cap closer to 2 than to 15!

3. What else do you think lurks out there that may be announced in the near future?? DDIM lives by hype. If they have any news that can even faintly be considered "good" they release it.
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