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Microcap & Penny Stocks : Docucon ( DOCU )
DOCU 68.86-1.1%3:57 PM EST

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To: Jeffrey Mansour who wrote (124)1/1/1997 12:13:00 AM
From: Paul Schmidt   of 510
 
Ah, the smell of smallcaps in the morning. :) It is going to be a fun January. Unfortunately DOCU is a microcap and there are very few mutual funds that will touch penny stocks like these so don't expect miracles. The ripe ones will be the $10-25 priced smallcaps that haven't moved much this year like CPCI, MRVC, ATCT, and a lot of the biotechs which are poised for some huge gains.

I see DOCU as more of a long shot gamble. Yea, they are making money but it is still small amounts and look at the cash reserves: $8,000. Ouch, that is a tiny amount. The nice thing is that there isn't much downside risk to this one and even though they are not directly involved in the y2k business they might still get sucked up in the y2k hype. I like to own a few microcaps but I never put too huge of a stake in these. I don't want to end up buying the next Comparator Systems story.
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