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Technology Stocks : Data Broadcasting Corp. (DBCC)

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To: John Wu who wrote (2564)1/10/1999 11:09:00 PM
From: ztect  Read Replies (4) of 5102
 
Briefing.com is Wrong

Reiterating esceurities, "Briefing.com" has no clue as to what it is talking about. Citing the same excerpt from the "report" briefing.com seems to be completely unaware as to what has occurred with DBC's business the past two years.

The only other fundamental news since the Marketwatch.com filing was DBCC's Q1 earnings report on November 16, which quite clearly had no positive news given that the stock price fell from $6 7/16 to $6 following the release. And indeed, there was no good news -- a multi-year slide in earnings and revenue continued. Earnings per share fell to just a penny from $0.05 in the year-ago period, and revenues were down 2.8%. There has been no other significant news from DBCC since the MKTW filing.

DBC during the prior quarters has transitioned its business from providing its services exclusively through traditional broadcast media to one that provides its products and services via the internet AND traditional media. The company HAS turned the corner and made it through this transitional period becoming "Internet Centric" with INCREASED cash flow and cash assets of $27 mil while barely touching their $30 mil credit line. The company has virtually no debt aside from interest at 7.9 % on a 2.5 mil note.

DBC is one of the leading , if not the leading, provider of time sensitive data and financial information to a wide range of clients globally. DBC has a wide range of branded products and has a huge number of alliances. Please refer back to my post. Message 7203263

DBC can provide and integrate their products via different media. Such a multi-modal provider can generate traffic for its sites through both conventional and internet methods. DBC also is a rudimentary part of many popular successful financial websites. They are like a part in a car that every car manufacturer requires.

Now the MALL / UBID analogy doesn't work on several levels.

Unlike DBC, MALL isn't and never was a leader in its sector.

MALL stock has a very small float (about 4 mil shrs) that has less institutional investors. Thus the stock price is a LOT LOT more susceptible to wild stock movement both UP and down.

DBCC shares have 35% institutional ownership of the 19 mil float. Institutional investors are a lot LOT less whimsical than retail investors. Plus with the larger float, the price has more of a cushion and shorters are less likely to be squeezed.

Shorts getting squeezed led to the quick run ups of stocks like KTEL and MALL because shorts continually had to cover at higher prices, since mm's didn't have shares due to the small floats.

ztect
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