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Technology Stocks : Discreet Logic (DSLGF) - It is a good buy NOW!

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To: Luc N. who wrote (914)6/17/1998 11:35:00 AM
From: Trader Dave  Read Replies (1) of 996
 
A director bought 10,000 shares a couple of weeks ago at $14.

I agree it's overdone, but not without reason. Missing a quarter when guidance was so solid combined with richard's departure. only those that now the story well know that Richard has been looking to only be in the chairman's capacity.

Moreover, the company doesn't do a good job of presenting the story in a compelling fashion. With small cap names, your message had best be short and sweet. Discreet's opportunity is simple and attractive, the way they present it is not simple.

Finally, it's only covered by three US analysts, two of them got blown to bits when they missed and Rossi feels like a hero for downgrading in october. His estimates are very conservative for fy 1999, he gets to come in a nd look like a hero as he raises his estimates and upgrades after they report the june q results and hire a new ceo.

perhaps they'll pre-release if the numbers are on-track and then in august announce a stock buyback.

TD
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