Richard, Yes, the P/E still reflects revenue recognized from the disposition of assets. But this company HAS turned itself around; reinvented itself from the ground up. For about two years there was legitimate concern that they may not be able to pull it off. But they did, and you really have to tip your hat to Mark Housley and all the DODV workers who have crafted an excellent suite of products and delivered on their promises to shareholders. The big gray cloud of uncertainty through all this has been the market itself...DODV had the product but literally had to wait for the market to develop!
Richard, this is no longer a dying hardware/peripherals company... It is a young upstart company in a young upstart industry that is in the early stages of rapid growth. Personally, I think Housley's revenue growth estimates of 50-100% for the coming year are purposefully conservative. One thing I have observed about his style is that he does his damndest not to promise something he cannot deliver.
In short, I am way more bullish than ever on this company. At 14 today, the chart pretty much screamed that the price got ahead of itself, but at long last, institutions are buying in (just pull up a 10-day chart...) so I do not believe that we are going to head back into the single digits. 1st Q of 2000 (to be reported in January) is going to be big...really big. If you want to know why I think that, just follow this link to the annual report webcast replay. (scroll down and click the "replay this webcast" and follow the instructions...)
digitalorigin.com
After hearing/watching that presentation, I think you would agree that, for at least the next few years, the stock of this company is going nowhere but up. I think you would be smart to hold on another year. My target of 24 for November, 2000 is extremely conservative, IMHO.
Cheers,
-Martin
(PS...most of the old regulars on this board have migrated over to the Yahoo message board. Just go to Yahoo.com, go to finance, then message boards and look up the dodv board...) |
