vern, You may want to rethink your purchase of DDIM. Granted, if they were an internet company, they would have a price of around $70. Unfortunately, they are a Y2K company whose franchise, like Cinderella's, expires at a specific time and date that is only about 18 months away. Their P/E is 281. It should be 2.8 if not 1.0. One could compare it to a royalty trust. If you own one oil well - or gravel pit, or gold mine - when it is exhausted, there is no more income. They are making some money but not enough to justify a price that values the company at $180 million.
There will be some residual work after the magic date but when you look at all the manpower that has ramped up to work on this problem, most of which will be fixed by the deadline, what will they do for an encore? There will be several companies that have pulled out all the stops to meet the deadline. By 2001, consulting companies like DDIM will be just trying to cover their payroll; forget making any money.
Their recent stock rise is attributable to their roadshow. After that is over, reality will set in. You probably have a day or two to cut your losses to just commissions. Most bad investments don't give you that opportunity!
Good luck on the rest of your trades. |
