new email from the CFO
Well, not sure how interested/happy you will be about this - i sent another email to Mr. Pellegrino and got a response this evening. Here is the message I sent:
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Sir,
Thank you for your response.
It is unfortunate, though understandable, that your ability to release PRs is restricted. However, there must be some ways that you can update the community on your progress – I have seen other security companies that post all the time about deals with unspecified companies – they can show the shareholders that they are on the right track without compromising their clientele.
As for the debt structure, I am aware of the dilution. Again, that increased awareness from PR’s can dramatically offset that. Again, I have seen far too many pink sheets stocks that rarely report financials and have no real product, yet still do fairly well on the market. On the other hand, your company is obviously dedicated to open reporting, actively markets products, and shows a real financial turn around. On the pink sheets, however, it seems that public perception of your company has more to do with its stock performance than financial success – the more people who believe in your company (even with companies that don’t have real products), the more activity it will see. This is why those PR’s are so direly needed, to bring active awareness on your company and increase its public perception.
On that same note, may I ask what options you have explored in regards to stock splits, share retirements/buybacks, etc?
Again, thank you for your kind words and taking the time out of your busy schedule to discuss this with me. I will continue to support your company and wish you the best success in the coming time.
Respectfully,
Cadet Ben xxxxxxxx
United States Military Academy
Class of 2008
3/4/F/2-1 USCC
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And the response tonight:
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Ben
You make a good point and I will talk with Tony and see if there is some way that we can better inform our shareholders of what is going on in the company.
As for the dilution in the stock as you are well aware our only two options at this time would be an increase in authorized to meet our debt obligations or a reverse split for the same reason. These are not actions that we would take lightly and the entire board and the management of the company is looking at this problem at the present time.
As regards to a stock buyback the company at this time does not throw off enough excess cash for this to be a viable option.
Thank you for your support.
On a personal note having a father and six uncles who all were in the Army in WWII all I can say is "GO ARMY BOO NAVY". (Lets keep that last part between us in case we have any swabbies as shareholders.
Our prayers and best wishes go to all the men and women in our armed forces.
Sincerely;
Michael J Pellegrino
Senior Vice President & CFO
DDSI
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There's a couple things in here to take away - first, I at least feel confident that this company is going to stay afloat. If they can get some good PR's out like they mentioned they are looking into, then they can increase awareness - definitely most important in my book, especially since the other pieces are in place for this stock to come back.
Unfortunately, they have not definitely ruled out a R/S - of course that's not necessarily bad IMO - i saw a stock just recently have a reverse split and it rocketed up after a dip (AWYB i think it was) - so we could have some potential even in the extreme case of an R/S.
Dilution is still a concern. BUt there are still much more diluted companies out there doing much better in the markets than this is.
Finally, they can't do a share buyback, which is understandable - i didn't think they'd be able to in the first place, but at least the idea is on their minds for when they might be able to at a later time.
Any other thoughts?
AI
