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Microcap & Penny Stocks : Dynamic Information System & eXchange, Inc. (DIXS) -- Ignore unavailable to you. Want to Upgrade?

To: TARIQ STOCKS who wrote (296)	6/5/1998 7:08:00 AM
From: Kurt_Ruckus	Read Replies (2) \| Respond to of 1084

ABOUT the formation of a new investing clan. Ok folks. Sorry it's taken me so long to gather my thoughts, and for all you asking thanks for your patience. I commute 20 hours a week and I've been just swamped lately. I'm typing this from a plane. Tariq wants to start a new clan, group, armada, army, insert favorite word here. He's already come up with a model and has investors lining up to join. Although I'm not used to the disciplined style he's advocating, I think he has chance of building something really feasible. Without having it in front of me to review, I'm just going to give my thoughts on some of the key issues that would need to be addressed for any clan to work. I'll start with the company fundamentals and go from there. 1) How undervalued is the company? If we drive the price up to book value, where do we go from there? Looking at DGIV, it still has a long, long way to go. The Rocketeers are helping it get to NASDAQ where it will really be noticed. One prerequisite of reaching NASDAQ is that the stock price be maintained above four dollars for more than 30 days. The stock chosen should still have plenty of growing room, once the initial price goal is reached. I'm already presuming that the company is trying to get to NASDAQ as well, but that doesn't necessarily have to be the case. I recall reading about a $100+ dollar bb stock just recently (German company I think). There were too few share holders for them to get on NASDAQ, I think that there has to be at least two hundred. 2) The company needs to have great leadership. It builds confidence in people purchases. 3) Good PR, that comes out regularly. If news is supposed to come out on a certain day, it should. I constantly see sell off's on missed promises. 4) Sound financials... obviously. Assurances that they won't dilute the float would be helpful (at least not too much). 5) Solid growth strategy. 6) The float has to be small enough to acquire. I'm sure there's lots more, please fill in the blanks. Now, I think if a good company is found, for this to work, there's the crucial aspect of creating an atmosphere that attracts others to join the clan. I don't think it's something that you can just plan or say presto and its there. The Rocketeers evolved from the DGIVaholics who used to just be people that were excited about DGIV. Tariq's idea of using PM's and secret meetings to choose the stock has merit, but I think this should only be done to pick the stock (unless he invisions just those investors gaining the float right off the bat). Being open with research and information and welcoming newbies is very important. Being secretive once the accumulation has started will not build the trust of outside interested parties and trust is a key ingredient. The small investors play an equally important role as the big investors. As an example, a clear statement buy a big gun investor that he's holding firm on his 500,000 shares, is an excellent incentive for those that may only afford 100 or 1000 shares. The big gun, and several lessor guns, still holding large quantities and taking leading roles, buying more and more, definitely will have a big impact, but instilling that confidence in the smaller investors, building there trust, may ensure that we have 500 people picking up 1000 shares a piece, so we have another 500,000 shares out of the float. I often wonder how many people are reading SI that aren't members. I imagine it's lots (hopefully I'll have a chance to read that new article on that very topic on the SI homepage soon). If the big investors want the little investors to stay, they're going to have to carry more of the load when the MM's start playing their games and dropping the prices, but their willingness to do so and confidence in the stock, ensures a broad based support of smaller investors which has a synergistic effect for all. If the core investors get greedy and sell off early, no one is going to trust them later. They'll be killing their golden egg laying goose (while simultaneously facing bad karma). The group needs cheerleaders and handholders and good analysts and good researchers. These aren't roles you can just assign, they develop, evolve. If the potential is good and a solid core is built, one that proves reliable they will come and everybody benefits. I think I had more to say, but at this point in the evening (I was kidnapped when my flight landed and I'm only just getting home). I'll just stop now. I'll try to post some links to some posts by other Rocketeers that I feel, capture the spirit of the group and why they are so successful. Probably sometime tomorrow if I can find the time, otherwise sometime over the weekend. G'night. Kurt PS. One more thing... what happens when the target price is reached? Does everyone suddenly bail out?