George, I am sure that Joe will answer your question, but since he has not as of yet I will see if I can shed some of your questions, I am reposting part of your note here for reference:
I tend to agree. I clearly don't understand why rational people are selling (to this
degree) in the light of all these acquisitions and increase in DCI's value. I can
understand if there is an emergency/immediate amount of cash to be raised (ala
Zwebner) but not this protracted liquidation at prices under $1.00. I just don't get it
if we're a 400 million dollar company on the verge of a $10 per share sale.
1. With regards to DCI's value, if you will think back a couple months, when I asked Charles on this BB whether he thought the value per share of DCI had increased over the past year and he indicated that because of the increase in the number of shares, he felt DCI was worth about the same per share now, as it was last year. I responded with a post showing the rapid growth of REVENUES PER SHARE over that period, which is my own yard stick in evaluating DCI's progress, but obviously there is a difference of opinion between us and the CC shareholders as to DCI's valuation.
2. With regards to why the sell off has been extended:
a. If shares had been dumped more quickly, the price would have been driven lower, netting the sellers a lower return.
b. The release of options was laddered out in the contract to try and prevent very large amounts of stock coming to market at once.
c. There was a huge number of shares involved. The total CC deal was about 8.1 million shares.
I am not saying that CC shareholders are our only sellers, (could be some frustrated DCI shareholders throwing in the towel, though I do not know of any besides Brett F. who announced on the BB he was bailing) though there are not any shares being sold related to any convertible preferred and I can tell you that the company is not printing shares and never has. Our total outstanding number of shares has been practically stagnant over the past month, we are not even up to the 21.5 million number that has been commonly used to round up to for about a month now. (Our current total for those interested is 21,369,030 as of 9/24/98) I am also going to risk sticking my foot in my mouth and suggest that sometime during the month of Oct. that we are going to see a decent recovery in our stock..we shall see if I am right or not.
James |
