SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934*
DEM, INC.
(Name of Issuer)
COMMON STOCK, PAR VALUE $.00001 PER SHARE
(Title of Class of Securities)
233201 10 2
(CUSIP Number)
Elizabeth R. Hughes, Esquire
Venable, Baetjer and Howard, LLP
2 Hopkins Plaza
Baltimore, Maryland 21201
(410) 244-7608
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
July 26, 1996
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on
Schedule 13G to report the acquisition which is the subject
of this Schedule 13D, and is filing this schedule because of
Rule 13d-1(b)(3) or (4), check the following box [ ].
Check the following box if a fee is being paid with this
statement [ ].
(A fee is not required only if the reporting person: (1)
has a previous statement on file reporting beneficial
ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no
amendment subsequent thereto reporting beneficial ownership
of less than five percent of such class. See Rule 13d-7.)
Note: Six copies of this statement, including all exhibits,
should be filed with the Commission. See Rule 13d-1(a) for
other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a
reporting person's initial filing on this form with respect
to the subject class of securities, and for any subsequent
amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page
shall not be deemed to be "filed" for the purpose of Section
18 of the Securities Exchange Act of 1934 ("Act") or
otherwise
subject to the liabilities of that section of the Act but
shall be subject to all other provisions of the Act
(however, see the Notes).
<PAGE>
CUSIP No. 233201 10 2
1) Names of Reporting Persons S.S. or I.R.S.
Identification Nos. of Above Persons
.............Chapman Capital Management,
Inc................................................
.........
2) Check the Appropriate Box if a Member of a Group (see
Instructions)
(a)
(b)
3) SEC USE Only
4) Source of Funds (See Instructions)
5) Check if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e)
6) Citizenship or Place of Organization
Maryland
Number of (7) Sole Voting Power
Shares 614.54
Bene-
ficially (8) Shared Voting Power
Owned by 0
Each (9) Sole Dispositive Power
Report- 614.54
ing
Person
With (10)Shared Dispositive Power
0
11) Aggregate Amount Beneficially Owned by Each Reporting
Person
..................................614.54...........
...................................................
.....................
12) Check if the Aggregate Amount in Row (11) Excludes
Certain Shares (See Instructions)
13) Percent of Class Represented by Amount in Row (11)
Less than 1 %
14) Type of Reporting Person (See Instructions)
...........................................................
...........................................................
.................
.........................................................IA; CO
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<PAGE>
CUSIP No. 233201 10 2
1) Names of Reporting Persons S.S. or I.R.S.
Identification Nos. of Above Persons
.....................The Chapman Co.
...................................................
..........................
2) Check the Appropriate Box if a Member of a Group (see
Instructions)
(a)
(b)
3) SEC USE Only
4) Source of Funds (See Instructions)
5) Check if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e)
6) Citizenship or Place of Organization
Maryland
Number of (7) Sole Voting Power
Shares ...........................
Bene- 614.54
ficially (8) Shared Voting Power
Owned by ...........................
0
Each (9) Sole Dispositive Power
Report- ...........................
ing 614.54
Person
With (10)Shared Dispositive Power
...........................
0
11) Aggregate Amount Beneficially Owned by Each Reporting
Person
...........................
614.54.............................................
...............................................
12) Check if the Aggregate Amount in Row (11) Excludes
Certain Shares (See Instructions)
13) Percent of Class Represented by Amount in Row (11)
Less than 1%
14) Type of Reporting Person (See Instructions)
...........................................................
...........................................................
.................
...............................................BD;
CO
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<PAGE>
CUSIP No. 233201 10 2
1) Names of Reporting Persons S.S. or I.R.S.
Identification Nos. of Above Persons
...........................................Nathan A.
Chapman, Jr........................
2) Check the Appropriate Box if a Member of a Group (see
Instructions)
(a)
.............................
(b)
3) SEC USE Only
4) Source of Funds (See Instructions)
5) Check if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e)
6) Citizenship or Place of Organization
U.S.A.
Number of (7) Sole Voting Power
Shares 614.54
Bene-
ficially (8) Shared Voting Power
Owned by 0
Each (9) Sole Dispositive Power
Report- 614.54
ing
Person
With (10)Shared Dispositive Power
0
11) Aggregate Amount Beneficially Owned by Each Reporting
Person
....................................................
............
614.54..............................................
..................
12) Check if the Aggregate Amount in Row (11) Excludes
Certain Shares (See Instructions)
13) Percent of Class Represented by Amount in Row (11)
Less than 1 %
14) Type of Reporting Person (See Instructions)
...........................................................
...........................................................
..................
.....................................................IN
- 4-
<PAGE>
Item 5. Interest in Securities of the Issuer.
<TABLE>
Beneficial Ownership
<CAPTION>
<S> <C> <C>
Percent of
Name Number of Outstanding(1
Shares )
Chapman Capital 614.54 (2)%
Management, Inc.
The Chapman Co. 614.54 (2)%
Nathan A. Chapman, Jr. 614.54 (2)%
Directors and Executive
Officers of Chapman 614.54 (2)%
Capital Management, Inc.
Directors and Executive
Officers of The Chapman 614.54 (2)%
Co.
</TABLE>
(1) As of July 26, 1996, 344,457 shares of Common
Stock, par value $.00001 per share, of DEM, Inc.
were outstanding.
(2) Represents less than 1% of the shares of Common
Stock outstanding as of July 26, 1996.
<TABLE>
Transactions by Chapman Capital Management, Inc.
<CAPTION>
<S> <C> <C> <C>
Date Number of Price Transaction
Shares
5/29/96 614.54 $15.50 Acquisition by
reinvestment of
dividends pursuant
to Dividend
Reinvestment Plan
7/26/96 203,000 $14.47 Market Sale
7/26/96 67 $14.47 Market Sale
</TABLE>
The Chapman Co., Chapman Capital Management, Inc. and Nathan
A. Chapman, Jr. ceased to be beneficial owners of more than
five percent of DEM, Inc. Common Stock on July 26, 1996.
-5-
<PAGE>
SIGNATURE
After reasonable inquiry and to the best of my
knowledge and belief, I certify that the information set
forth in this statement is true, complete and correct.
CHAPMAN CAPITAL MANAGEMENT, INC.
By: /S/ NATHAN A. CHAPMAN, JR.
07/26/96
Nathan A. Chapman, Jr.
(Date)
President
THE CHAPMAN CO.
By: /S/ NATHAN A. CHAPMAN, JR.
07/26/96
Nathan A. Chapman, Jr.
(Date)
President
/S/ NATHAN A. CHAPMAN, JR.
07/26/96
Nathan A. Chapman, Jr.
(Date)
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