To: David Bartkowski who wrote (3713 ) 3/21/1998 12:58:00 PM From: george eberting Read Replies (4) | Respond to of 19331
Personally, I believe that Joe thought the dividend and buy-back, coupled with the announcement of acquisitions, would have a very beneficial impact on share price. When you use shares in lieu of cash to buy new companies, the higher the share price, the fewer shares required to do the deal. At current share prices, each new deal is going to cost us a lot more than we (and Joe) would prefer. That leads to dilution in a big way. (Yes, yes, I know. Joe does wonders when he negotiates a price, but you can only do so much with two dollar bills). We continue to dance around the question: "Why are people selling at these levels when so many good things are coming down the pike?" I don't think the answers thus far given are at all convincing. The people who are selling are "old eyes" so to speak. They already know a lot about DCTC. They aren't new, hard nosed brokers and analysts who have to be convinced through extensive research. The people who are selling already know the DCTC story. And yet, they continue to sell large amounts of stock. Please don't give me the argument that everyone has different reasons for selling. Don't give me the argument that there are better opportunities elsewhere, because if half of what we believe is going to happen does happen, there are very few "better opportunities" elsewhere. Don't give me the argument that "the current sellers got their shares at much, much lower prices so they are just taking profits." I have become convinced that something else is going on. We are being manipulated by someone(s). Not by members of the DCTC team. But someone else. Did Joe see it coming? Is that why he started the buy back? To protect the value of his trading currency? (Not as a gesture to show how much different we are from all the other BBs out there). As a group, we think very highly of the DCTC team, but we aren't privy to all of the reasons they do what they do. Sometimes they probably act more DEFENSIVELY than OFFENSIVELY. Perhaps the buy back was started more as a defensive manouever than an offensive one. How many times have we hit $2.00 only to be driven right back down? As has been said before, if it weren't for the buy back, we would be in deep doo doo. But Joe has to continue the buy back so the value of his acquisition currency doesn't become totally worthless. Do my own dd? I'm trying, darn it. I guess I'm just not savvy enough to know where else to look for an answer to the plaguing question "Who is selling and why?" If I sound a little wimpy this morning, it's probably because I'm feeling that way today. Sorry. Anyway, like others of you, DCTC is by far the largest holding I've ever had and I'm still holding!! George E.