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


To: Toni who wrote (4569)4/6/1998 11:31:00 PM
From: James Harold Alton  Respond to of 19331
 
Toni, Thanks, but we know who the real "gurus" are they do to. I just know enough to know I ain't in that group..yet. (G) If you were referring to the trade I made today where I sold the 5K shares for tax reasons and then couldn't resist putting it back in when the stock was dropped hard by the MM's, I only brought that to the BB to illustrate how the MM's can take advantage of us if we let them. (the rest of this note is general and not directed at you per se Toni, (G))

I know it's hard to see without level 2, but even without that tool one can be pretty sure that the reason for a suddenly dropping price is due to the MM's playing with us if the volume is very light on the way down. These "shake and bakes" can get really serious sometimes. I have seen BB stocks lose as much as 1/2 of their value in just an hour or so, with no change at all with the company. If no one steps up to the plate for shares and the selling becomes a panic it just feeds on itself. Then after it's over, there are lots of folks wondering why they sold. What a deal for the MM's, first they get the benefit of the high volume and then if they can shake a lot of shares out down low, they can really make out when the price bounces back. The only problem is the price almost never seems to bounce back as high as it was, so if this tactic is used often and is sucessful then it appears that it can really hold a stock down. Perhaps if most of the shareholders are well informed (and personally I believe it is the fact that most DCI shareholders are on average well informed that has limited how far the MM's can drop us before the buying returns) about their company and recognize this common tactic, the MM's would have less control over the stock?? I cannot figure out anyway reasonable way of handling this other thought I had, but if there was a way that some of us could be ready to step in with buying when the MM's drop us on low volume for no reason I believe this would be the most effective of all. It's amazing some times how little buying it takes to turn this stock around if the drop is only caused by MM games. If the MM's found that instead of gaining inventory down low when they tried to drop us hard that they ended up giving up shares at low prices because of buying then(to be later replaced with more expensive ones (G)) maybe they wouldn't try this on DCTC? A pipe dream? Maybe. If anyone has any ideas on how this might be accomplished or even if they think it's a bad idea for some reason lets talk.

James