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

To: semi-recumbent who wrote (3899)	1/26/1998 4:31:00 PM
From: george eberting	Respond to of 4489

Interesting and valid points, Sam. First off, I was not aware that it would be illegal for the company to buy its own stock to artificially support the price. But I can certainly understand why it would/should be. I think we all agree that the stock is at bargain prices right now. Management apparently believes that it can get as good or better return on its $5 million dollar investment in DCTC stock as it can in alternative investments. Makes sense to me. George

To: semi-recumbent who wrote (3899)	1/26/1998 4:40:00 PM
From: JOE MEDSKER	Respond to of 4489

SO, You are correct it is illegal for a company to buy their stock simply to push up the price. Since Joe feels the stock is undervalued its wise for him to pick up as many shares as possible at $5.00 and under for future acquisitions. PW can not do any buying for the company at the ask, thats a nono. PW can however sit on the bid as long as DCI instructs them to. So, besides picking up undervalued shares, the stock also becomes more stable. Best Regards

To: semi-recumbent who wrote (3899)	1/26/1998 5:46:00 PM
From: Pr-Ac Man	Read Replies (1) \| Respond to of 4489

To use a stock buyback to artificially support the stock price is wrong and probably illegal. It may be illegal, and as you pointed out Joe M. did not state that as an objective. Clearly, it is a bargain for DCI to buy back their own shares at low prices. However, this buyback will also effectively support to the stock price, and there is nothing illegal or wrong about that (IMO). It helps to level the playing field for a BB stock that has to contend with market pressures not associated with listed stocks. This is merely a distinction between stated objectives and practical implications. PA