Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I just met with DATM last week. I used to own 5% of the company back at $7 before anyone knew about it. The company is solid. But they have some things that could hit the stock between now and April.

1) tax-loss selling for all those people that bought at $45.

2) Lucent is supposed to second source to HP. By the way the people that sell clocks to HP for Lucent is a company called "FEI" or Frequency electronics. Who sell into Motorala, Lucent & HP. They also will be getting some big orders on the Satellite side.

3) A company called Trimble Navigations just came in and underbid DATM & SYMM. For the Northern Telecom Contract. They will make the clocks for $1500 vs DATM&SYMM bidding $2200.

4) New competition moving in, ODETA just hired the former president of DATM's division so the could compete with DATM, there are also foreign competition coming in.

5) Lucent contract comes up in April, Lucent over all is 40% of their business. The portion up for rebidding is smaller than that but they will probably take a 5% cut on their margins from that side.

I believe that this is going to be a good sold business going forward, but I think DATM is seeing some pricing pressure. I am waiting until all this straightens out until I would put my money back in. The big winner near-term is in my opinion Frequency electronics. "FEI"
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.