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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (16199)	5/7/1999 10:09:00 AM
From: Bill Brogan	Read Replies (2) \| Respond to of 19331

Colin, All-- Since I don't have anything to hide nor do any of my associates or fellow posters (as far as I know), I didn't feel concerned speaking wiht the SEC. My life savings are at risk and darnit--I want some answers! Had my conversation with Reid Muoio, SEC Staff Attorney, (202) 942-7205, this morning. Although it wasn't as productive as I had hoped, he was as helpful as he could be considering "his hands were tied because of the SEC's historical no-comment policy." Although he couldn't tell me DCI was under investigation, it was quite clear the SEC is still collecting information about DCI for some reason. I was asked how long I've been invested in DCI (Jan '99) and how I found out about it (from another SI thread) and how much I had invested in it (everything). Here's the list of questions I had prepared to ask Mr. Muoio (compiled from my own and several other SI thread members) and any answers I received: 1. Why the trading suspension if the pooling of assets method of accounting is still acceptable while other companies are successfully using this method (Why was the stock suspended when a company such as Level 3 (LVLT) is requested to make an adjustment for I believe in excess $100 million to their financial statements related to "improperly" recording an acquisition and their stock wasn't suspended)? Was there something in the financial statements that reeked of misrepresentation or obvious illegal activity? Or was it simply using DCI as an example with the new rule getting rid of pooling of assets accounting for mergers? Only got to ask the first part of this question. Answer was basically "no comment." He said the SEC found something inaccurate and/or inadequate enough to issue an alert to investors and that the "pooling of assets" part of the press release was "boilerplate." 2. Is the Edge deal the only one in question? The suspension order implies one or more mergers. Didn't get to ask this one. 3. Why the seemingly harsh rules for MMs to begin issuing quotes again? Further punishment? Some say experience shows this might cause MMs to not want to trade this stock any more resulting in a delisting for DCI and a worthless investment for shareholders. (Rule 15c2-11) He said these strict rules that MMs must abide by when the suspension is lifted are not meant as punishment but do require the broker-dealers to do "due diligence" and are not insurmountable. He said sometimes this negatively affects a stock and we'll just have to wait to see how DCI is affected. This is where he emphasized that it was the Company's responsibility to address investors with what is going on (i.e., if there were an ongoing investigation, the Company should be telling us). He was kind of surprised that there hadn't been a press release from DCI concerning this matter. 4. Was this action instigated by a third party's "tip" to the SEC of some apparent wrongdoing (a la our hostile suitor friend)? Are ongoing lawsuits an issue to the SEC or is that not their concern? Didn't get to ask this one…I knew the answer would be "no comment"! 5. Is DCI under some sort of investigation, or is it over with the results being the trading suspension? We shareholders were under the impression that the stacks of paperwork being supplied to the SEC by the company were related to the impending merger with Wavetech (ITEL) and not with any sort of investigation. So did the SEC have any specific problems with the Wavetech merger? Are they looking at anything else as it relates to DCI? eg: Is it possible that DCI would resume trading and be suspended again. Again, no comment but he did reiterate that the final part of the press release was an invitation for anybody who "knew" anything about the company to call him. Hmm… What the heck IS going on??? 6. Does the SEC realize that a trading suspension probably does more harm to the innocent shareholders than it does to the corporate officers who are responsible for the suspension? Yes, he agreed, this action will "potentially harm" current shareholders at the expense of "protecting prospective shareholders" who might want to know what's going on at DCI. 7. Is it a given that trading will resume at the end of the suspension? The current suspension order is the only one he knows about. 8. Are they looking at alleged MM manipulation as it relates to DCI? Didn't ask. 9. Do you read the Silicon Investor BB on DCI or any other BB? He didn't answer me when I asked him, but I don't think I'd be reaching too far to say that they do. 10. By talking with you, is there going to be any impact to the suspension, i.e. an extra week? Didn't get to ask, but his answer to my question #7 tells me the answer is no. For what it's worth.