Dear Mr. Clements,
I read a post that you had intended for DCI's president to respond to. However, knowing that he was away on business today and won't be back to the office until tomorrow, I wanted to provide you with some insight to your questions in post #4233 regarding our buyback program.
As was stated when we announced the buy back program, transactions could occur either on the open market or in privately negotiated transactions. Conducting business on the open market should be easy enough for everyone to understand, so no need to elaborate further at this time.
Privately negotiated transactions do not occur in the open market and the price is a reached through negotiations. Due to time contstraints and simple economics it is not practical, nor advisable to pay open market prices (or above) in private transactions.
You ask why we would not offer a higher price to an individual or group in a privately negotiated transaction. Well, we are in the business of trying to create/increase shareholder value. If we can negotiate a deal at a lower price, then we have improved our rate of return on the investment.
We do indeed understand the value of DCI's common stock, which is what prompted the decision to embark on the buy back program in the first place. The willingness to invest in a company's stock is as strong an endorsement as anyone can give. At these low valuations, the company views DCI as an investment opportunity that we wish to pursue.
I would like to also add, that we encourage shareholders to sign up to be on our mailing list to receive regular updates on the company's progress. If you haven't done so already, I recommend you do so. You can sign up either through the guestbook found on our web site (http://www.dcic.com) or you can email me directly at DCITEL@aol.com.
I hope this provides some answers for your questions. Thank you for your interest in DCI Telecommunications.
Sincerely,
Daniel J. Murphy
VP, Financial Planning |
