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Technology Stocks : New Dimension Software (DDDDF)

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To: Ariella who wrote (171)4/29/1998 12:06:00 PM
From: Elliot Lepler  Read Replies (1) of 209
 
Ariella and Mike,

I just finished listening to the conference call. Anyone who sells this stock now clearly has not listened.

New D is poised for a further dramatic increase in earnings and the stock price in no way is reflective of the company's prospects.

30 cents annualized is $1.20. The Oppy analyst was calling for $1.29 for the year and she HAS to increase that number. At $27 we are just 20 times earnings. That is CHEAP!

Also you should factor in that this company has to date generated only scant coverage in the brokerage community. At the end of the call management asked for more analysts to jump on board and enjoy the ride. The market is expensive and the analysts will be looking for relatively moderately priced stocks with excellent growth.

And as they pick up this company, they bring new buyers into the stock. Guess what happens next.

True the progress of the stock price has been in fits and starts. But I note that there was no run-up before the earnings announcement so there is no pent up selling pressure.

Yesterday is the beginning of a significant leg up in the stock price. I think we clear $30 this week. And we may see current prices at some time in the future, but in my view there is a better than even chance we will see $50 before we see $25 again.

I am a long term holder with an average purchase price in the 5's. I MIGHT consider selling when I compete a 10-bagger. The fundamentals just are too strong.

Mike, thanks for your continuing updates and solid info on this and other boards. Your perspectives are educated and not hyped.

Elliot
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