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Microcap & Penny Stocks : DDSI - DIGITAL DESCRIPTOR SYSTEMS -- Ignore unavailable to you. Want to Upgrade?

To: Fred-beaches who wrote (743)	3/21/1999 5:35:00 PM
From: Saverio	Read Replies (2) \| Respond to of 878

Picked up from Raging Bull, for whatever it's worth: From the letter posted on SI: 1)"- Approved shares authorized to be 50 million (10 million currently authorized)." MY PERSONAL COMMENT: I would not read too much into this: the board has simply given itself authority to increase the numbers of shares issued, up to a max of 50 mil, should there be any need. It does NOT mean they plan to issue shares up to 50 mil at this stage. What they want to avoid is, in the eventuality where they might need to make a small private placement to alleviate a financing crunch, to have to first change the statutes to authorize themselves to issue shares beyond the previously approved maximum of 10 mil, before doing the placement. It's to avoid wasting time if they need cash, and does not mean they will go for another 40 mil shares in one shot. 2)"- approved a reverse split at a maximum of five (5) to one (1) in the future at the discretion of the Board of Directors." MY PERSONAL COMMENT: they want likewise have the authority to effect a reverse split if they deem it advisable. The authority they sought is limited to a 5 to 1 split maximum. If they deem it justified, they may do one on a 2 for 1 basis, or whatever. Why they might want to make one, I don't know. One reason might be to be eligible to trade on another exchange some time in the future...---> pure speculation on my part. I personnally view this as contingency planning, i.e. putting themselves in a position to act if there is need some time in the future in these two areas. I don't consider this as scary as some do...while I don't know what the company has in mind at this very moment. Just my opinion.