CALABASAS DIGITAL FIRM PLUNGES 8% RETIREMENT PROMPTS SELL-OFF.Byline: Brent Hopkins Staff Writer CALABASAS - Spooked investors sold off their Digital Insight Corp. stock Friday in reaction to President John Dorman's decision to retire. The electronic finance processor's stock plunged $1.42 on Friday, or about 8 percent, to close at $15.55. More than 1.69 million shares changed hands, more than four times the normal volume, which analysts attributed to Dorman's late Thursday announcement. ``This was about what I'd expect,'' said Stephen Laws Stephen Law is a philosopher who teaches at Heythrop College in the University of London. He also edits the journal THINK [1], a source of philosophy aimed at the general public, affiliated with The Royal Institute of Philosophy. , a vice president in brokerage WR Hambrecht + Co's New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of office. ``It's the uncertainty surrounding who the replacement would be, and how long the transition will be. Additionally, the stock was pretty fully valued Fully Valued A stock whose price analysts believe reflects the market's recognition of the company's underlying fundamental earnings power and therefore is unlikely to rise further in price. If the stock goes up from that price, it is called overvalued. at $17. When you have a negative announcement, a fully valued stock is expected to go down.'' This marks the second time in six months that the firm has lost its president, with Dale Walker leaving for personal reasons last November. Dorman also serves as chief executive officer and chairs the board of directors, but wants to leave within 18 months. In the interim, he'll work on picking a successor, something analysts predicted could be difficult. ``There isn't a logical No. 2,'' said Glenn Greene, a principal in the Chicago office of brokerage ThinkEquity Partners. ``John's extremely well thought of, by me, by a lot of Wall Street and investors.'' Greene credited Dorman, a former executive with Oracle Worldwide Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , with reviving re·vive v. re·vived, re·viv·ing, re·vives v.tr. 1. To bring back to life or consciousness; resuscitate. 2. To impart new health, vigor, or spirit to. 3. Digital after customer-retention issues arose last fall. In the first quarter of 2003, it reported revenues of $35.5 million, which translated into income of $2.9 million, 9 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . In contrast, it saw revenues of $30.1 million, with a loss of $34 million, losing investors $1.11 per share in the same period of 2002. Though he was unavailable for comment Friday, analysts figured with earnings woes righted and stock price still more than double its 52-week low, Dorman seized an opportunity to go out on top. ``I think for John, it's pretty satisfying to see Digital as the leader in its market,'' Laws said. ``Since he's been the guy who's grown it to where it is today, he's looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. someone who can take it to the next level. He probably wants some well-deserved time off.'' But while Dorman might be stepping aside, his influence will likely be felt in the recruitment process. Analysts agreed that a successor probably would come from outside the company and that Dorman would monitor the process closely before leaving. ``He's well liked and a solid guy, so I don't think he's going to leave the company hanging,'' said John Kraft John Kraft (born May 6, 1941) is an American politician. He is currently a member of the Democratic Party and a was candidate for Insurance Commissioner of California in the 2006 democratic primary. His occupation on the ballot was listed as Insurance Healthcare Consultant. , an analyst with Portland brokerage D.A. Davidson. ``I think he'll be around for a while until everyone's comfortable with the new manager, so I'm not worried about the stock.'' Brent Hopkins, (818) 713-3738 brent.hopkins(at)dailynews.com |
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