To: James Harold Alton who wrote (5235 ) 4/24/1998 3:17:00 PM From: Pr-Ac Man Read Replies (1) | Respond to of 19331
James: I think that this is a healthy debate, and I'm glad that we are having it. Let me say that I have more questions than answers, and I won't pretend to tell you that I know what's going on or that you are out in left field. On the contrary, you may very well be right, and in time we will know. And if you are right I certainly won't begrudge you, as we will all benefit. Over the last several months I have tried to keep an open ear to all the voices that have been speaking about what is happening and why (and they have been many and diverse). My conclusion: DCTC is a solid "start-up" company with excellent management. And that is why I continue to hold my shares in spite of the weak price action. However, being a "start up" company is a whole different animal than being an established company with an earning's record and a market niche. Is our stock price being manipulated? If so, by who? I could only guess, and I am no expert at interpreting trading activity. But I do think there are reasons why others could and would be playing with us. While there are lots of good things in the works, until some of the deals on the table come to fruition, I think that we are still classified among the "wanna be's" by those who prey on microcaps. I don't think that the LOI's mean much to them, I don't think that the dividends mean much to them, I don't think that the cash position means much to them. Statistically, the odds are against us as the vast majority of start up companies fail in the end, and that adds to the burden that small companies must overcome. So how could a company with so much going for it fail? For one, the low stock price is going to hurt us (IMO)at the bargaining table, even with the help of our investment bankers. It seems to me that this is one of the key strategies that players use to sink a perfectly good company. If you can keep a lid on the stock price below its "real" value, you greatly increase the chances that the company will fail. And the jury is still out on us. I would assume that most of the people posting here believe that DCI management will be able to pull it off (including me), and I think that we will know more clearly in the next couple months. But, if for some reason the current deals fall through or we don't get good deals because of the lack of leverage that we currently have, then I think this company will be in trouble. What I am saying is that there may be more than one way to interpret the weak price action. As I understand it, your perspective has basically been that CC shareholders have been dumping stock from options that they have because they have already made a good profit and, perhaps, don't understand the potential of the company (if I misrepresented you, please correct me). Another possibility, however, is that the market is not yet convinced that DCTC will survive. In that scenario we are a potential feeding ground for those who know how to convert this uncertainty into cash. That's a vulnerable position to be in, and if we show weakness instead of strength in the coming months, I think that we will see the vultures hovering. Anyway, these are just some thoughts floating around in my head. Not gospel, just some possibilities. I do think that it is important to consider all the options; there are no guarantees here. Geez, it's almost my bed time again. PA