To: Eric G. Erpenbeck who wrote (7365 ) 8/1/1998 1:23:00 PM From: James Harold Alton Respond to of 19331
Eric, Per your post: "That is exactly the problem the overhead "NEVER" seems to be gone. We have been hoping we are through it for months. Sure we get a day here and a day there but it just keeps going and going and that is what is so frustrating. To me this is the market because this overhead directly and constantly effects the stock price and the value of our investment and that is all that really matters (while this would appear as a short term viewpoint it has been going on for a long time and the end needs to be located). Eric, We have been under the CC selling since last Novemeber, which is about 9 months now and yes it does feel like it has been forever and I can sure relate to your frustration, I feel it as well believe me. The CC selling does have a direct effect on our investment in DCTC, no doubt about that at all, in fact I figure we would be in the $6+ range easily if not for this overhead. How many shares are left to be sold? It's a really hard call to make. There were 8.3 million shares total in the CC deal and we can account for about 4 million having been sold at this time. 3/4 million are in $4 warrants so are not an issue until $4 is reached. A portion of the CC shares are being held by CC shareholders that are not selling from what I am hearing and then because the CC options are laddered out through the year 2000, options have not even been granted for a good many shares. I would guess that there is potentially 1.5 - 2 million shares that will be sold if the selling CC shareholders can continue to find ways around the restricted status of thier shares. Most of the shares being sold are being done so illegally. A big number to be sure, but a lot smaller than the 4 million we have already eaten. I may have more accurate information at a later date and will bring it to the BB at that time. You can go back through the SEC filings showing some of the CC positions and how they have dropped. The Whyteburg account for instance has dropped from the original 2.7 million+ to only .7 million as of June 11th, and I will bet you that this figure is less now. The way I am going to deal with this "frustration" is by buying as many of these CC shares as cheaply as I can. (G) If we drop below $2 next week, I am going to sell off essentially all of my stocks except for DCTC and buy more DCTC. You sure would not know it from the price action but IMO Murphy is closer to reaching all of his stated goals than ever before. The price today has little to do with what we will all see if those goals are reached. James