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Strategies & Market Trends : Z Best Place to Talk Stocks

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To: DanZ who wrote (15372)7/20/1998 7:39:00 AM
From: Ron McKinnon  Read Replies (2) of 53068
 
Dan DWRX

>>> I was just wondering if you have an opinion on DWRX
>>>Considering that the company isn't in liquidation, I think it is severely undervalued at $9
>>> Is this is a stock that you would buy and hold? I'm planning to put it away for a while and was wondering if you see something in the balance sheet that I missed

I don't think that you missed much

the "accounting" book is about $8
the "liquidation" book is about $4
I'd say the "perceiced investor" book is say $6

I would not buy here:

value/dogs are so out of favor, for good or bad

I do not understand their product/industry; have no idea what the demand is or may be going forward; do not know how they stack up against competitive products

Is it "severely undervalued at $9"; I really have no idea

imsiders have sold a % of their holdings the last two "open" windows in Feb and May at 18-22

Friday was a major sell off; there might be a DCB today

If I had to guess I'd say this messes around in the $7 to 10 range for a while; downside to 6; upside to 12; so risk/reward about a push

What I would like to see here is a 10-25% stock buyback; they have plenty of cash for that
If not are they saying they need all that cash to fund future losses or to make acquisitions that they can not now do with stock priced in the cellar?

I am of little help reading this one; best of luck on it
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