It's Friday. The market is quiet. Then the share price of a small, diverse vendor called Distinctive Devices Inc. (DDI) (OTCBB: DDVS) shoots up by more than 30 percent on the news that it has hired Jack Grubman as a strategic adviser (see Grubman to Advise Telecom Firm).
OK, so it's not quite Rich McGinn joining Taqua Systems Inc., but close enough (see Meet My Shareholders? and Rich McGinn).
In case you've forgotten about Mr. Grubman, he was, in the eyes of some, the telecom biz's own devil incarnate. Here's a quick summary of his handiwork:
"We look forward to leveraging the experience and long-standing relationships Jack has developed in the telecom and media sectors," says DDI CEO Sanjay Mody, in a prepared statement. Mody didn't return our calls for further details of how Grubman might help out.
The news served DDI well in the financial market. Its share price, which had closed Thursday at $2.04, was at $2.50 at midday New York time, up 23 percent -- though it had been as high as $2.75 this morning. This values the company at just $19 million. In its last reported quarter, ending September 30, 2003, the company had revenues of $138,000 and a net loss of $228,000.
DDI is not a big hitter in the telecom world; maybe it wants to be. Its share price was close to zero early last year, but it has picked up following the acquisition of some other small companies: a German set-top box technology firm and an access technology vendor in India.
There's many a comment we could make about the pearls of wisdom Grubman might bring to the DDI boardroom, but we'll leave that to the patrons of our message boards. We're sure you won't let us down.
— Ray Le Maistre, International Editor, Boardwatch