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Stocks D / Datum Inc.


Subject:  Re: Check these earnings estimates Date:  10/29/1998  12:20 PM
Author:  helofool Number:  24 of 34

"Take a look at the earnings estimates for the 4th quarter and next year, particularly the EPS growth percent. Looks like the analysts are expecting some big improvements. Hope they are right!"

Be careful of what you are looking at. For example, next quarter there are 2 (only 2) analysts looking at this stock. One of the two is estimating 0.28 for the Q, the other -0.12. That makes the average 0.08, not a bad number, but hardly a VALID consensus. If you go out to next year, only one of those guys has offered his guess, and he thinks 1.00 for the year. Let's think about this for a moment, (and I am making the assumption that the 99 est is being made by the same analyst that had the bright picture for Dec98). That individual anticipates 0.28 for Q4-98, and yet only 1.00 for Q1+Q2+Q3+Q4-99. That to me sounds like it is going in the wrong direction. Based on the 0.28, I would hope to see something greater than 0.28+0.28+0.28+0.28 or >1.12 for the full 99. My point is that with this small of a sample size, you need to be very cautious. Yes, I am still long on DATM, but I don't put a lot of failth in these numbers.

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