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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: UnBelievable who wrote (57901)	7/9/2000 1:27:33 PM
From: UnBelievable	Read Replies (1) \| Respond to of 122087

DIGL <<< Newly Launched SEC Lawsuit Rather than the just settled law suit: From Motley Fool Author: konrads Number: of 271 Subject: Re: No News - No Daytraders Date: 5/13/00 11:23 Post New • Post Reply • Reply Later • Create Poll Problem Post • Recommend it! Recommendations: 1 Hi Petra. i wish you luck with your investing. In the end, you've got to form your own investment opinions. Be very careful about believing message posts. Everyone who posts has a bias - myself included. All of your eggs in one basket is somewhat risky, my friend. But, as they say, you don't hit home runs unless you swing for the fences. I have followed DIGL for nearly 3 years now. I bought it at about 12 (if I remember correctly) and then it tanked to 2 as earnings were restated. This was a bad period in DIGL's history, as the SEC investigation began and it looked like DIGL would go bankrupt through the settlement. However, the law firm structured a deal which allowed them to scrape out of their problems, while repaying investors at least something, and so they have. Now those prior investors (myself included) await our settlement stock and cash - due to be paid-out in late May. Prior investors should do very well with their payouts, as DIGL's share price has gone up. It is difficult to predict what impact that payout will have on current share price. I would expect some volatility for some duration as a % of prior shareholders sell. Your guess is as good as mine as to what that % will be. (It could be significant, since this has been "dead money" to prior investors for a long time.) However, it will help the float, imho, which has been very low as a % of the total stock. The most troubling aspect to me re: DIGL is the continued presence of Dr. Bryan Zwan as DIGl's prinicipal shareholder and Director. He (and other insiders) hold about 70% of DIGL's entire stock. To me, that's just too high a % to feel a level of safety from rounds of insider selling. Additionally, it was with Zwan at the helm that the SEC investigation began re: the restatement of earnings. Plus, in late March, I think it was, another SEC investigation of Zwan himself began re: fraud. There are an additional two lawsuits-one from a from prior partner and one from a prior employee, outstanding. This is a lot of litigation for a smallish sized firm. If you visit Yahoo Finance, you will see that the DIGL message board is dominated by daytraders. That makes me question who owns this stock... those who buy and hold long-term or those who trade quickly. Now... all that said, I did buy it myself several years back, on the promise of the sector. And, from my $12 basis, it's a "4-5 bagger," which is nothing to spit at. Maybe I just know too much about it, now. I guess my point is, that I could own Philip Morris, if I believed its growth prospects to be good. I don't own it, because i don't like what the company's procucts do to people. Likewize, I don't like what DIGL did to prior investors. Good luck to all.