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Technology Stocks : Diamond Multimedia

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To: diddlysquatz who wrote (4217)4/4/1999 5:00:00 PM
From: nick nelson  Read Replies (1) of 4679
 
Screaming BUY.....

www1.zacks.com

At 6 1/8, DIMD is a steal - right now, before the inevitable rise in anticipation of the earnings announcement on 4/21... that's 6.125/18(~PE)= 0.34/4= 8 1/2 cents per quarter earnings for the rest of '99. Zack's says 0.13/q, or 0.53/y for 1999!

Zack's values DIMD at ~$9.36 a share(assuming PE of 18)... that's a 30-50%+ run-up between now and the earnings announcement. IF you can catch a run-up of 33 1/3% on any stock every 3 weeks - that's 17 x 0.33= 567% portfolio appreciation per year!

It's spring time, outdoor sports are picking up, and the RIO has very little market competition YET - DIMD will be profitable for at least the next 2-3 quarters. The only thing capping a run-up in DIMD are the MM's and no interest in the stock by the Street.

I'll buy 5000 every time it drops to <= 6 1/8.<g> DIMD is a great trading range stock between 6-8!

IMO, nick
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