Taken from Briefing.com..
"10:40 ET ******
NEW DIMENSION SOFTWARE LTD (DDDDF) 20 1/4 UNCH. It's been a tough two days for shares of this developer of systems management software. Yesterday, the company reported in line results of $0.27 a share and the stock got hit for 5 5/8 points. Following extremely bullish comments from the one firm that covers the stock, one would expect DDDDF shares to mount a minor rebound rally. Not the case. The best the stock has been able to muster is 3/4 of a point, and, over the past few minutes, has even given that up. So what's the problem? Oppenheimer says it can only be profit-taking. Considering that the stock had run-up as much as 37% since the beginning of the year, I can buy that explanation. But, after taking a peek at DDDDF's fundamentals, a 5 5/8 points seems a little severe. For example, fiscal 1997 revenues and net income rose 49% and 101%, respectively. And with full year revenues of $65 million and market cap of $233.5 million, DDDDF is not a tiny company. Moreover, with the issue trading at only 15.7 times Oppenheimer's 1998 estimate ($1.29) and 11 times its 1999 forecast ($1.84), this stock trades at a tremendous discount to its near and long-term forecast growth rates of 43% and 32%, respectively. Noting that the stock currently trades at a 50% discount to its peers, Oppenheimer continues to rate DDDDF a "strong buy" and has a 12-month price target of $33 a share."
briefing.com
DD |
