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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?


To: mnispel who wrote (4744)5/10/1998 9:43:00 AM
From: RocketMan  Read Replies (2) | Respond to of 50264
 
Thanks for that addition, Mark. As I said, I do not follow LCI, so do not have a lot of details about them. At one time I held several companies of this type, because I think they are great plays. At one point, though, I decided that I might make a lot of money with them, but would not make obscene profits as I can with DGIV, as our Captain says :-) Mmm... 7.5 cents, eh? Wow, it keeps dropping all the time. Maybe UniDial will drop their rates also. Isn't competition great?!

One thing on being undervalued, from this morning's Washington Post.
and article by James K. Glassman entitled: "A Contrarian View: Stocks' Risk Is Low Bonds Safer Than Stocks? Contrarian Begs to Differ."

The article discusses the book "Contrarian Investment Strategy" by David Dreman, a classic that is coming out with a new edition.

Although DGIV is not a contrarian play it is in one sense: low P/W ratio. And keeping in mind what dwlima has said about correct and incorrect conclusions from p/e ratios, but the article says:

"Over the past 20 years, loads of research has supported Dreman's earlier contentions. For example, it is now undeniable that stocks with low price-to-earnings (P/E) ratios -- in other words, stocks that investors are shunning -- do better than stocks with high P/Es. Ditto stocks with low price-to-sales ratios or high dividend yields -- all signs of value."

I do believe we have the lowest p/e in the industry. And as contracts keep getting announced, if our stock price does not rise (fat chance) our p/e will even get lower! What a kick!!!!