To: WISDOM MILES who wrote (14591 ) 3/9/1999 12:50:00 AM From: James Harold Alton Read Replies (1) | Respond to
Wisdom, Your right, the progress that DCI has made has not been reflected in our share price and that fact has been a frustrating experience to some of us that have been with DCI for a number of years. We can blame this either on a lack of exposure or due to the float increasing faster than those shares can be absorbed by current and new investors, but IMO it's just more proof to me that the markets seldom if ever reflect the companies true fundamental value. That fundamental value however should eventually be realized at the point that confidence increases that the company will be sold. IXC appears to be a very good example, in that their stock was highly undervalued on a fundamental basis, until such time that they announced to the world that they were shopping for a buyer, their recent chart tells the story... With DCI, there has been talk of the company being sold for a number of years, and while I do not doubt that this company will be sold once a serious offer is entertained at or above the stated target price, it's pretty obvious that the general market does not believe that this is currently likely, since there does not appear to be enough value to support the $10+/share sale price AT THIS TIME. If the sale of the company were however open to just whatever the highest bidder would pay, I can imagine that our share price would move up considerably to reflect that value. A case could be made that our share price is suffering IMO because of the managements honesty about DCI being sold at a target price in the future, since the perception becomes "why own this stock until it appears the company is getting close to attaining it's goals?" I agree with Lou however, that the focus should not be on just the sale of the company. The path that is being laid out to build DCI into a serious LD company appears to hold more potential than the original plan anyway but unfortunately the primary focus seems to be only on the "big bang". We shall see..
