To: Pr-Ac Man who wrote (5219 ) 4/23/1998 3:38:00 PM From: James Harold Alton Read Replies (1) | Respond to
PA, Since we are working with incomplete information in this area, it's up to each of us to decide what scenario seems to best fit the market action we have been seeing over the last several months. I outlined my own best guesses in an earlier post where I had concluded that in a worst case scenario that we might have as much as 1.9 million (this would be less now, 1.7 million or so) restricted shares that potentially could be either sold or shorted against, and implied that until those shares were either all sold, or the selling of those shares was stopped via some legal means that this issue was not "resolved". We do know that millions of CC shares have been sold over the last several months and IMO it's pretty easy to understand that with a thinly traded stock like DCTC that this level of selling is enough to crush the share price, so to me personally I feel that is the "smoking gun". So you ask how do we know that there aren't naked shorters working in concert to drive the price down? We don't for sure, but I personally do not see the pattern that a naked shorter with the deep pockets required to crush us would be using, I don't see DCTC at these levels being a good play for a naked shorter (talk about exposure if you lose and realistically how much could someone expect to short us down from this level? If our shorter went too low, DCI might just step in an buy it all back. (G) ) given all of the positives this company has going for it and I don't see a lot of trades at the ask that look like they could be shorts on the tape now. Given no hard evidence to support the naked short theory, this is enough for me to believe for the time being that what we are enduring now, is the same thing we have been enduring since Novemeber..selling, selling, selling and I mantain that most of it is coming from North of the border..we will just have to see.
