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qed

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Alias Born 03/22/2004

qed

Re: None

Monday, 02/07/2005 1:49:52 PM

Monday, February 07, 2005 1:49:52 PM

Post# of 86
This stock is a hidden gem. Their new hip-e computer caught my eye at the Microsoft booth at the CES show in Vegas as I was always looking for a cool computer for my daughter.

I think it's a great concept and an even better turnaround story. The company was bought by a team of investors in early 2004 and brought in new and experienced managers to develop the hip-e computer. They started shipping the computer in December and the improved sales and profit markets should start showing in their next quarterly report which should be released in Feb 05. The current m/c is only about $12 Mio which I think is ridiculously low. When I first saw their computer I thought their m/c would be around $ 200-300 Mio.

Check out the press releases of the last 6 months. News about customers canceling orders, directors quitting their jobs, super low profit margins and of course a very competitive environment make you understand why investors just gave up and the stock is as such depressed levels:
http://finance.yahoo.com/q/h?s=DLFG.OB
I think the risk to the downside is very low but the stock could turn into an amazing turnaround story.
Thoughts?


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