To: James Harold Alton who wrote (6587 ) 7/7/1998 5:15:00 PM From: Mr. Cellophane Man Read Replies (2) | Respond to of 19331
James, You write: "You have certainly got this part right, the question to be answered is "why"?". The obvious answer to me is because nobody knows about us because we have no PR. We could have the best fundamentals in the entire free world but if nobody knows us, so what? Musya is right in saying it doesn't matter what our valuation "should be", what matters is what the street thinks. If they don't know about us, nothing else matters. Also, I see zero value in speculation about the identity of a seller of 37K shares. There are lots of shareholders among us that could drop (one or more) "bombs" like that, i.e., we can't always blame those North of the border. I'd bet some of our "stong hands" are getting fed up enough at being jerked around by the MMs to think strongly about starting to drop some of their own. If we can't live with 37K "bombs" without a 10.71% price drop (what I think we lost today), IMO this holding is pretty damn scary. I'm by no means an expert on buyback programs but just think what if DCI bought back 50K shares a day at $1.50 for 18 market days. This would get us past the shareholder meeting, perhaps the Locus deal, and hopefully the filing of the 1st quarter results at a total cost of $1.35M. We'd also have 900K shares back in the fold. When we last saw some numbers, it seems that we still had the lion's share of our $5M buyback left so doing what I suggested (or even more) seems totally do-able. Personally, I think it's time for DCI to start shelling out (again). Like I say, I'm no expert but tell me the fallacy in my scenario. [And don't get hung up on my 50K/day number ... that's just for the example. From the buyback numbers I remember seeing (albeit several months ago) we probably have enough left in the kitty to more than double my number]. Dan (Note: These hypotheticals aren't necessarily directed at you James; you just happen to be at the right place at the wrong time :-)).