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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: David D. who wrote (11774)	1/10/2001 3:40:43 PM
From: Bob Rudd	Read Replies (1) \| Respond to of 78918

David D: I have a modest DITC position with average cost around 9.75 after averaging down on the drop. Listened to conference call and will probably hold on at least until mid-Feb projections. The degree of the revenue drop was a surprise, but a substantial portion of it, the OC-3 delay is already corrected. They have the cash to weather a dry spell and at this point the projections aren't calling for significant losses. My tentative guesstimate is this could go as low as cash [-3.5], but within a year could recover to more normal earnings expectation [01 concensus was 1.86 with 40% growth rate: cut that by 1/2 and you have .9 @20%, give that a 20x multiple and you have 18, +11 from here] Thus upside/downside about 3x with a big chunk of uncertainty.