I would like to make some comments about the events of today related to Docucon. Obviously, this is my spin on things so please dispute any statements you may disagree with. Please read all the way through. BE ADVISED I AM A SHAREHOLDER AND HAVE BEEN FOR SOME TIME.
1) First and foremost, I will make a categorical proclamation: DOCUCON NEVER WAS, IS NOT, AND PROBABLY NEVER WILL BE A YEAR 2000 COMPANY. If anyone has any solid, substantiated, and company endorsed EVIDENCE to prove otherwise, let them speak now - AND YOU BETTER HAVE DAMN GOOD PROOF. The 'press release' which showed up on the Docucon and 'Year 2000' thread was a complete fabrication, a hoax, by unknown parties. It is probably the case that the people posting the release were unwilling victims but I'm not sure how we'll ever know and its probably not worth the effort anyway. So I'll make a second proclamation: IF YOU (AND CONSIDERING DOCU'S SHARE VOLUME TODAY, THERE MAY BE LITERALLY THOUSANDS READING THIS) PURCHASED DOCU ON THE PREMISE THAT THIS COMPANY WAS A YEAR 2000 FIRM, SELL YOUR SHARES FIRST THING TOMORROW BECAUSE THAT IS NOT WHAT THIS COMPANY DOES NOR, AS FAR AS I CAN TELL, WILL IT EVER DESIGN YEAR 2000 SOFTWARE. I know I'm being repetitive and I generally abhor CAPS, but sometimes you need to go to extremes to get rid of the driftwood.
2) Respect the power of not just the internet, but the silicon investors forums. As far as I can tell the only places the press release appeared were on these two threads. Yes, the only places in universe. The release caused the volume of the stock to increase by about ten fold, caused the stock price to almost double during part of the day, and caused THE CHAIRMAN OF THE COMPANY, WHO SEEMS TO BE QUITE RETICENT ABOUT MAKING ANY STATEMENTS REGARDING THE COMPANY, NOT TO MENTION SELF-PROMOTIONAL ONES, TO ISSUE A REAL PRESS RELEASE. There was also all the gibberish on the threads (I was guilty of a small part of that) especially on the year 2000 thread before the hoax was revealed. If you don't catch my drift, this was a stunning achievement for this press posting and it could have only been achieved with a willing crowd of takers. Our collective suckerdom was profound.
In my view, there were some equally stunning bright spots:
1) The company behaved precisely as they should have, no more, no less, in a timely manner. One of the first people to spot the fraud on the year 2000 thread also praised the company's response techstocks.com. The company did not even acknowledge the nature of the hoax (and they must of known since at least 2 people on the DOCU thread called the investor relations firm). We all know of the publicity they could have generated if they mentioned 'year 2000', even in a negative tone, in their release.
2) As a shareholder there were two other things that were pleasing today: a) many of the newcomers were surprised at the strong fundamentals and discounted share price. More than once people dismissed the year 2000 story and were attracted to Docucon itself as a solid investment. b) Despite this overall atmosphere today, and especially after the Company's announcement, the stock maintained its 30-40% gain (also noted in posts 101 & 102). |
