TO ALL - I spoke with Joe Murphy this morning. He was very gracious and took plenty of time to discuss many things concerning DCI with me. He answered all of my questions regarding the convertibles. The series C and D shares were all converted and sold last year before November 1. The S-3 that was filed in June is for the Series E shares. The SEC has to approve the S-3. Joe said before they approve the S-3, they must approve the S-1 that was filed last year. (I don't understand this at all, so I will just take his word for it). When the SEC approves this conversion (noone knows or can predict when that will be), these shares are available for trading. However, DCI has buyback rights to these shares and would have first call on them. Now, I have the whole story and I feel much better.
Let me say that I appreciate very much all of the DD that all of those of you close to the company have done. I have relied (perhaps too much at times) on your hard work and haven't done as much leg work as I probably should have. These convertibles scare me because I was involved before with a company, where these not only destroyed the stock price, but the company as well. Of course, the company had other problems, but I think had it not been for the sheer number of the convertibles that had been issued, the company may have been able to work through the other things. Several people that I respect a great deal are always negative regarding these issues, however, I realize there are times when this may be the only solution for a company. Obviously, if they are used wisely, the end result can be positive instead of negative.
Jewel |
