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

To: Toni who wrote (6267)	6/15/1998 3:40:00 PM
From: ernie de la fuente	Respond to of 19331

Toni, My experience in investing has made me cautious with writedowns. Companies that continually use them and declare them as "one time" in nature, basically are just hiding the fact that the costs endured outweigh the revenue. It has become a neat way to continue to impress the street with earnings that really never hit the bottom line. If a company does that often enough, eventually the street recognizes there will be no end to the "writedowns" and hence no positive net income. Look at USDL. They have been writing off varying items related to restructuring, costs of M & A, costs of operations qtr to qtr for over a year. The street has had it with the recurring "one-time" events and now the stock price is suffering. I do not feel this is the case with DCTC as I believe this is not going to be a recurring event. I have faith in the management of DCTC but I want to see that faith backed with the numbers soon!