Tuesday, May 1, 2007

DBYC - An Interesting Play

When something seems to good to be true, it usually is. This might be the case with Disability Access Corporation (DAC) Symbol DBYC. The company's recent PR addressed numerous shareholder questions. One of the first answers struck a chord with me:
"Based on contracts in hand, and the expanded services and efforts of the enterprise we fully expect DAC to generate a strong positive cash flow and show a profit by year end, barring unforeseen events.Based on contracts in hand, and the expanded services and efforts of the enterprise we fully expect DAC to generate a strong positive cash flow and show a profit by year end, barring unforeseen events."
I see "strong positive cash flow" and "profit by year end" as two very encouraging statements. But lets remember this is a pink sheet stock and I am always cautious when it comes to rosy PR's. Strong positive cash flow could mean the company is going to have revenue far exceeding its expenses which would be good. Or it could mean they are going to dilute the crap out of the stock to raise cash - hence the word 'strong' in the positive cash flow. So cash flow could be misleading, but a profit is a profit. Then we have the 'barring unforeseen events'. I'll leave that up to you to decipher.
At the current price this stock seems very attractive. It rose almost 100% today on no news and heavy volume. I expect the uptrend to continue but I am also wary - as a profitable stock would not be trading for $.0003. Also the recent PR's were of a positive tone and failed to prevent the sell-off.
I bought a small position at $.0003 and will let it ride. Hopefully I can sell it and produce some strong positive cash flow!
For more interesting stock discussion visit: http://www.pennystockforums.net

No comments: