Kathy....You asked a few questions of me. I hope it is acceptable to ask a couple back before I proceed to respond. I noticed you and Sid have had interaction on the Ballard thread. Although I didn't look into the dialog too extensively, it appeared as if you backed him several times. I also see that last year you came to Sid's aid in a DHMG discussion with Patrick (Aug 20) in where Patrick was questioning Sid's motives. So, my question: Is it just a coincidence that you and Sid show up interacting on two different threads? Just asking.
If you've continued to follow the DHMG thread, you will see that, since Patrick, there have been several more to question Sid's motives behind his relentless bashing of DHMG. The fact exists that there is a 800k share short in DHMG. The same way many insiders try to puff up the condition of their company to raise the value of their stock, shorters, for obvious reasons, do the opposite. Fahnestock, with their DHMG net cap at over 5 million, probably has more at stake than DHMG insiders. With that in mind, would it be out of the question that Fahnestock could have a representative on this thread bashing DHMG???
Now, for my humble opinion on DHMG, I feel DHMG is a good buy at these levels depending on, of course, the investor. There are no promises in this market and as you well know, suitability is king. However I will explain why I believe DHMG is a good play for the right investor. I think the company may have gotten involved in some "aggressive accounting methods." Fahnestock recognized this and began shorting the stock up in the mid-teens. Now, if you read the March 23rd issue of Forbes, there was an article talking about how many public companies (NYSE and NASDAQ) participate in these aggressive accounting methods. They showed big earnings followed by a one time write-off. The crux of the article was this: Although these methods could be construed as somewhat misleading to the unsophistcated investor, they were not deemed illegal. Generally, the stock price would fall because it had run up but business would continue and the stock price would sooner or later recover.
With this in mind, I think DHMG will be cleared of wrong doing by the SEC. Fahnestock has made their money and will soon want to cover and move on to their next deal. Business will continue and DHMG stock will recover.
Basically, all the news is "discounted" or "factored" into the current price of the stock. Buy on rumor; sell on news. Or in a shorters prospective, sell on rumor; buy on news.
Considering the situation, I think one has to think up-side at this point.
JPerry
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