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Strategies & Market Trends : Three Amigos Stock Thread

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To: Pilot who wrote (4598)5/10/1998 3:50:00 PM
From: Phil Jacobson  Read Replies (1) of 29382
 
Re: DAWK, it's hard to figure out when a 5 year trend of downward movement will turn around. If you can do it great, but it's a tough thing to call. The stock is up the last few weeks but I saw nothing substantial in either the 10K or news releases that would justify the price increase (there were a couple of contracts announced that added to $3.0M but that's not going to cause a large price increase). There could be a buyout pending or huge contract in the wings but that's just sheer guesswork. The company is experiencing consistent revenue declines and while they're doing their best to cut expenses to keep earnings on target that's not going to sustain them for long. In my opinion the company looks undervalued because the market is predicting their value to continue going down.

Phil
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