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

To: steve phil who wrote (3593)	1/21/1998 8:27:00 PM
From: ernie de la fuente	Read Replies (5) \| Respond to of 4489

Steve, I think there is a huge sell(or short order) sitting out there that still has not been completely filled. Let's assume someone bought 1,000,000 shares of DCI when it was $0.31 because that person likes to buy tons of cheap stocks with potential. That stock zooms to $2 in less than 2 years(like DCTC did). While still a great investment, this person wants to move on to the next cheapy stock with potential like PKGP. Well, guess what, to sell 1,000,000 is not a boring task! You need to have buyers lined up or else you will shoot yourself in the foot with your own sell(the MM's will either not honor the order if it is a limit or will tank the price if it is a market order). Since we expect tremendous news, there are a lot of newbies buying up DCTC right now. Of course the seller knows about the news, THAT IS WHY HE WOULD SELL NOW, he expects lots of buyers to be lined up for him. All of those 30,000 blocks you see at the bid are matched with lots of smaller buys at the ask. If you see lots of buys at the ask without the corresponding sell, there is a good chance the MM's are just piling up buys to match the next 30,000 block sitting out there(which you might see posted tomorrow). It is going to take a lot of 30,000 sell blocks to rid all of this 1,000,000 sell. Obviously, the 1,000,000 is a made up number for this example but it would explain why we might see what we call "lots of buys at the ask" days with no price movement as well as sometimes seeing what appears to be lots of sells and no price movement. You have to look clumps of days, not single days. Not to worry, the MM's ARE NOT losing money. Don't let anyone here try to convince you otherwise. I hope this helps. There are folks on the board with more expertise than I on this so I hope they will correct me where I am wrong(how 'bout it Colin). VI