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


To: john david martin who wrote (3231)1/2/1998 8:58:00 AM
From: Colin Cody  Read Replies (1) | Respond to of 4489
 
I wouldn't be a buyer of DCTC expecting the "Dead-Cat Bounce" play you got with ADMR. ADMR has been falling almost non-stop for the past year from $11 to $5 a couple weeks ago, and then TAX-LOSS SELLING erased another 50% of its Market Cap during the last half of December alone, dropping it to a 52 week low of $2.50.
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Whereas, DCTC has had its selloffs AS WELL as its rallies.
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Why buy now? I chose to add shares a few days ago because:
The price seemed to have stopped falling, and the trading seemed to indicated the beginning signs of a change-in-trend was upon us.
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The year-end tax-loss selling would be over in a few more days.
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I believed there was some insider selling (uncomfirmed, though I tried) of stock that would eventually stop when they ran out of shares to sell. (I believe the insider stock involved is/was being sold by a former M/A shareholder).
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Without a closing bid OVER $2.00 I will not be happy that a change-in-trend actually has started.
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Colin



To: john david martin who wrote (3231)1/3/1998 4:52:00 PM
From: James Harold Alton  Read Replies (2) | Respond to of 4489
 
John, There are others on this BB that can better answer your questions, however since they have not so far gotten around to it so far I will respond to some of your questions.

1. DCTC did not make it as high as $5 in October. My recollection was that the high was about 4 9/16. The late fall/early winter months are traditionally hard on stocks like DCTC but the main reason for the drop in price was IMO due to a large seller unloading his position over the past couple months. It has been speculated but not proven as far as I know that the selling was somehow related to the recent sale of the W H Smith contract to Smartalk and that some shares previously restricted or owed but not issued were freed up and are being sold. I am betting that the fact that our "seller" is showing up less often and seems to be moving fewer shares is a sign that this might be about done. I believe that once the market has consumed this sellers shares that we will move back up.

2. Cyberfax obviously has exposure to the Asian markets, however their product IMO should if anything become even more attractive, after all Cyberfax offers companies a way to save substantial $$ on thier costs of sending LD faxes.

3. I'll let others take this ?. I know that the long term goal has been to build the revenues of DCI to 100 million or more and then to seek companies interested in buying DCI. DCI has made very good progress towards this goal over the past year I have owned this stock.

4. I think that Cyberfax has the potential to become a large % of sales but is not the largest % of sales at this time.

5. I believe if you recheck you will find that the new Nasdaq listing requirements are $4. I think it's possible that DCI might be grandfathered in since it has already met the previous requirements, but can't say for sure. Also, the Nasdaq is not the only option. While a listing is important for DCI, I don't think this is a requirement to move us up from these price levels.

6. DCI is a M/A company and has grown at what is an amazing rate by buying companies with unrecognized or developable potential, then either reselling a portion or turning them around. This seems like a monumental task to me, but Joe Murphy has shown us time and again that he can make it work and usually inside of a short time frame. The revenues for last quarter for instance, exceeded all of the previous fiscal years.

7. You have to answer this question for yourself. My own reason for investing now is that I feel that we are extremely undervalued at these levels based on evaluation of the co.

James