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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (16927)	6/22/1999 8:26:00 PM
From: De Peepster	Respond to of 19331

Dear Colin, Not much, the elimination of the word pink sheet. They did say that the ITEL shares are being returned though.,, Barbara

To: Colin Cody who wrote (16927)	6/22/1999 9:34:00 PM
From: Colin Cody	Read Replies (2) \| Respond to of 19331

General Questions: Since DCI has not been trading, possibly due to certain parties feeding a story to the SEC about pooling accounting, a story that was fully resolved between the SEC and the Company a month ago, but a halt is a halt and the NASD is making it difficult to review such a complex organization as we have here with DCI... heck, it's much easier approving a worthless shell with a certified balance sheet showing nothing but $10,000 cash and $10,000 shareholder's equity... ASSUMPTIONS: The Company has issued and outstanding 20,000,000 shares. There are 3,000,000 shares sold short. Meaning there are 23,000,000 shares held by shareholders out there. QUESTION #1: What if we never trade publicly again, BUT RATHER we are bought out by another public company for say $X cash per share. Let's use $9 for an example sure to make us smile (g) That means the acquiring company would be writing a check for $$180,000,000 to buy all 20,000,000 shares. BUT hold on! There are 23,000,000 shares held by shareholders. How would the shorts cover when there is no market out there to allow them to buy back the 3,000,000 short shares? WHAT WOULD HAPPEN? QUESTION #2: What if we never trade publicly again, BUT RATHER DCI spins off a subsidiary to shareholders. For the example let's say they issue 1:1 shares to us. DCI would issue 20,000,000 shares of Newco, Inc. BUT HOLD ON! There's 23,000,000 of us out there. Where will the additional 3,000,000 shares come from?? DCI will not issue 23,000,000 shares of Newco, Inc. So how would the shorters resolve this? ESPECIALLY if Newco Inc. also does not trade, which might allow the shorters to buy Newco in the aftermarket. WHAT WOULD HAPPEN? QUESTIONS #3: What if DCI does all the above!!! They sell a division and distribute say $3 at share as a liquidating dividend, then they spin off an PUBLICLY traded business and they spin off a subsidiary that does not get registered for trading. Wow!?? WHAT WOULD HAPPEN with the short positions then? The more I think of this the dumber it sounds to have shorted a viable company that does not really trade publicly at the present time. I wonder... Colin