GOOD EVENING EVERYONE!
After reading all of todays posts (as usual littered with posts combating naysayers) I thought it would behoove us all to disect the reason(s) why Digitcom has retraced almost 50% since the high of $8 was reached on May 4th, 1998.
One of the main reasons, of course, is the fact that evaluations did (do) not justify such a precipitous rise in such a short time (0.165 to 8.00 in less than three months) unless realized revenues justify it.
Such a "sudden" rise for any BB stock leaves the door wide open for the MM to short the stock as long and hard as they want - once that is the case, the ONLY "safe haven" is reaching the NASDAQ, which is the eventual goal of any BB stock.
Researching DGIVs sudden, meteoric rise, I have come to understand that the rocketeers' selfless promotion of the DGIV story played a huge role in bringing the company to the general populace. -
Obviously!
Their concerted efforts to promote a company which they believe in, along with a continued rise in share price, have earned them rave reviews in the annals of internet stock investing.
We had the biggest volume in the stock on 4/14 and 4/15 when over 1,200,000 shares were traded on consecutive days and drove the share price from 5 3/16 all the way to 6 1/2. (coinciding with the Jakarta opening).We reached $8.00 a share on 5/4 monday, after Digitcom announced that it acquired an Indonesian Telephone company (which was actually announced the Friday before).
The euphoria subsided when the crisis in Indonesia "sunk" in and a number of naysayers started to question the ability of DGIV to make good on anticipated reveneue flow with countries in turmoil such as Indonesia and Russia.
Several attempts to bring the stock down, however, had been thwarted by the loyalty investors showed towards the rocketeers and their obvious dedication to the company and the telecom future. (the stock hovered around $6 for a period of 10 days).
Only after repeated promises of 1st quarter earnings and more contracts with "actual numbers" were not delivered in a timely fashion and more naysayers appeared on the thread, did the confidence in the company and the rocketeers for that matter, start to wane.
An unfortunate mention in a newsletter called the RED LIGHT DISTRICT added fuel to the already precarious situation and further drove the price of Digitcom down, near a 2 months low of $4.3125 were we are currently residing.
These are the events which have unfolded -
Facts - yes! grounds for abandonment?
CERTAINLY NOT!
DGIV has been carefully and strategically devising a plan that will enable the company to attain a NASDAQ listing, because only a NASDAQ listing will enable DGIV to escape the constant manipulation of the BB market makers. This effort takes time (it has only been about 1 month since DGIV qualified for a small cap listing) those of us who know a little bit about investing and the trials and tribulations a BB company has to go through to accomplish this goal, realize that DGIVs future looks "extremely promising".
Once NASDAQ status has been achieved, naysayers will undoubtedly concentrate their efforts on other stocks (no doubt other BB stocks) and DGIV will be able to turn its undivided attention to improving shareholder value by signing up more prospective POPs.
A NASDAQ listing is the only hope for any BB stock, until then anything CAN and WILL happen to a company, regardless of how positive its prospects/numbers are.
If you believe in DGIV (and I certainly do) then hold the stock and wait until this elusive listing is attained.
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Finally - when I spoke to Jimmy Chin, back in March, he told me that April would be a "huge" month for DGIV (the stock went from 1.75 to 7 that month) - he feels the same way about JULY.
I am long & strong DGIV (even though I am down alomost 200k dollars from the high of $8)
Stupid? - Maybe
In it for the long run? - Absolutely, Positively, Unequivocally
"YES"
RICO
GOOD NIGHT! |
