DCI Telecommunications - DCTC Today Message Board

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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today

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To: Mr. Cellophane Man who wrote (6836)	7/19/1998 2:15:00 PM
From: Juli	Read Replies (5) of 19331

TO ALL I don't know why this didn't jump out at me in previous filings, but I really hadn't realized that DCI was issuing such a large amount of floorless convertibles to fund operations. From February 97 through March 98, they issued 2.75 million shares based on these convertibles. The first two batches were issued with a conversion of 70% of market after 90 days and the last was 45% at 77 and the rest at 80%. If you want to understand what these floorless convertibles do to a stock, get a copy of Bloomberg's March 98 issue and read Death Spiral Convertibles. Not only are these share usually dumped back on the market for a quick profit, but in most cases the buyers of the convertibles short the stock to drive the price down to reap an even larger profit. This is not good. I hope that someone will ask Joe Murphy at the meeting if this is going to continue. It is perfectly clear to me now why this stock has been so depressed the past year. Just wish I had been paying more attention or I would not be in this stock as deep as I am. Jewel

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