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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today

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To: James Harold Alton who wrote (6419)6/27/1998 12:07:00 PM
From: Pr-Ac Man  Read Replies (3) of 19331
 
Hi James:

I agree with you. DCI is a much better value fundamentally now than it was a year ago. And if the Locus deal closes, it would be a phenomenal deal at these prices. As you pointed out, though, the market isn't always fair. In fact, I would argue that the market is seldom fair. Stocks tend to be underpriced or overpriced which provides opportunities for "value" and "momentum" investing. I think we could very well see $1.5 again simply because it takes so little selling to drive these price down during these "inter-event" periods. Hell, I could have single handedly caused yesterday's 8% drop, and I'm just a small fry investor. It is my opinion that we have not built a large enough investor base to support the price during these times. I'm not sure when that will change, but I am positive of one thing. If things continue on the current path it WILL change, and maybe like a torrent.

The thing that kills so many small, aggressive-growth companies like ours is an inability to manage the costs of expansion (which has been discussed at length in the past). Joe Murphy (to date) has shown an ability to acquire strong companies at very low cost, which is a MUST for a small company to survive. This is the key point that has convinced me to increase my holdings recently. If we do hit $1.5 again, I plan to adopt the Joe Medsker "screaming buy" approach and gobble up as much as I can.

Good fortune to us all.

PA
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