George,
In regard to DCTC not lending money to a subsidiary, continuing operations have been running in the red the last two quarters, except for the SMTK deal, and most of that money is still tied up in stock (although it has been leveraged with puts, according to this BB). With their emphasis on growth, I don't believe DCTC has much "spare change" lying around. According to the 10Qs, CZ is not the only one lending money to the company. Both the Nov. 14, 1997 and Feb. 18, 1998 10Qs list advances from shareholders (to DCTC) of $370,700 and $335,000; respectively. Obviously, other shareholders feel DCTC is a good enough investment to risk their own money via advances.
To MJZ and CZ,
Thank you for your responses to the stock sale issue. I appreciate your candor. The "why sell?" question I raised in a previous post has been answered. That is appreciated. I apologize for suggesting a negative explanation for the sale and not simply waiting until all the information was available.
JJ |
