To: steve phil who wrote (12041 ) 12/3/1998 3:46:00 PM From: James Harold Alton Read Replies (1) | Respond to
Steve, I have always felt that the only requirement for DCTC to move up from undervalued levels was for the overhead that was holding the stock down to truly dry up. We appear to be at a point in time where the groups that wanted to short us down are getting weak, the CC overhead is essentially dried up and all it is taking is a small amount of daily buying to move us up. I think that we should be headed towards the $5 region even without the QP ending, but I do think that this would take time. Why? Right now there are people that are just looking at our chart history and figuring that based on historic pricing that we are topping out. What is not realized however is that back when DCTC was last above $4, we were about a 3 million $/year company. We now have over 20 times the revenues, and only a 40% increase in our total outstanding shares, which includes the Edge acquisition. So, on a per share basis, DCI is running more than 10 times the revenues now. We can look at this one of two ways, either that DCTC was way overpriced at 4 5/8 last Nov. (97) or that we are just way undervalued now, personally I think it's a little of both. The consolidation phase we appear to be currently going through is a good thing IMO. % wise DCTC has moved up a lot over the last month so some retracement is good to let the short terms shares out. Notice however that each time the MM's or the shorts try to get control and tank us, that DCTC pops back up again. It might not be this week, but I personally think that our uptrend will continue once this consolidation phase is complete, QP or no QP..we shall see.
