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


To: Bruce Hoyt who wrote (4769)4/11/1998 5:12:00 PM
From: Bruce Galpeer  Read Replies (8) | Respond to of 19331
 
To All,

The following scenario is some fact and some supposition and opinion from me.

Fact... MZ knows Saul Shalev and WP and has for many years.
Fact... MZ brought WP to DCI for a possible buyout.
Fact... If DCI had gone through with the deal MZ would have received a commission because he was acting as an agent not as an employee.
Fact... One of the reasons that the WP deal was killed was that Mr. Shalev decided he wanted to sell 3 million dollars worth of DCI shares as soon as the deal was completed. We all know that Joe Murphy would not let DCI shares go through that type of share price terror as that many shares come to bear on the market in such short order. There were other things that showed up in the DD from Grant Thornton and DCI that also contributed, I am not privy to those items .
Fact... There has been considerable pressure on the stock in recent weeks even with all the tremendous press releases.
Fact... There has been confirmed short selling.
Fact... There has been illegal selling of Legended shares from 1 or 2 CC shareholders.
Fact... The short selling has come to an end.

Supposition... MZ is in tight with some of CC's major shareholders.
Supposition... Mr. Shalev changed the terms of the WP deal at the last second hoping to slide it past Joe Murphy.
Supposition... The pressure on the stock was manufactured by some CC shareholders to keep it down until the WP deal was completed. This would allow Mr. Shalev to receive more shares than was originally agreed upon, many, many more.
Supposition... This was a concerted effort by some parties to make current management and Joe Murphy look bad to even the staunchest of DCI shareholders. In other words in the face of all the good news the price continues to fall. This would leave the most loyal of supporters to believe that something must be wrong somewhere in DCI. There might not be panic in the streets but people would begin to bail just to be on the safeside.
Supposition... Someone with an agenda against Joe Murphy and DCI started a smear campaign through e-mail and phone calls about problems within DCI. Although, NONE of these allegations was ever backed up with any type of supporting facts.
Supposition... The current short or shorts and other CC sellers who may have been part of this, were planning to get all their shares back plus a whole lot more when the WP deal was completed. With these people expecting Mr. Shalev to be selling up to $3 million worth of DCI stock upon completion of the deal, they could have expected his shares to keep the price artificially low while they recover their shorts or other shares sold.
Supposition... After this scenario had taken place(it did not), there could have been a proxy fight for control of DCI.
Supposition... There could now be a scramble in the oppositions camp as the WP deal has not played out as expected.

Opinion... If you look at the events and the time frames as they occurred, to me this looks entirely plausible.
Opinion... Now that the short seller has been found and stopped, I would expect to see the price begin to rise.
Opinion... When the short is forced to cover we could see a fast rise as word hits the streets that between 600k and 700k must be covered in such a thin stock. The only time the stock has not been thin was when shares were being floated in from CC shareholders or the short.
Opinion... If we see more press release's such as we have seen recently from DCI this will create added pressure on the buy side and further push up the price.
Opinion... We are about to see a nice turn around in the stock price and added support, as more people begin to take notice from each piece of old news and new news and do their own DD.

Take it for what its worth but I put this together to show how and why DCI's stock price could have been under so much pressure over the last few months. Outside the posted facts the rest is just supposition and opinion from me.

LONG AND STRONG!!! GO DCTC!!!!
Bruce



To: Bruce Hoyt who wrote (4769)4/11/1998 11:43:00 PM
From: David Bartkowski  Read Replies (2) | Respond to of 19331
 
Bruce, I am no expert on EUTO, but I am a little familiar with the short squeeze that was taking place. You probably know better than me, but I think it is a different case than DCI. With EUTO, it was the MM that were shorting and the shareholders fighting back with a short squeeze by calling in their certificates. Now with DCI, it is actual individual shareholders that are shorting illegally! The brokerage houses and MM are not going to sit around and wait for this individual to cover, they will force him (or her)!

Also, if I would have to believe that if brokers/MM and others saw a large short position coming into play, they also would start shorting themselves (disclaimer - pure speculation) to pick up some profits on the way down. If this is true, our short position might be a lot larger than this one or two individuals that were found.

This being the case...we are going to have a very exciting week!! As WD said "you can take that to the bank" ->lets hope so!!

DAVE



To: Bruce Hoyt who wrote (4769)4/11/1998 11:44:00 PM
From: David Bartkowski  Read Replies (1) | Respond to of 19331
 
Everyone,
Since it is less than an hour away, I wish everyone the best on this Easter Holiday. I hope we can all take some time tomorrow to appreciate how truly we are blessed by our God who is alive and well. From me and my family I wish all my fellow shareholders, friends, and staff of DCI the best of holidays.

God Bless,
DAVE