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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today

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To: Sun Tan who wrote (11)8/5/1997 3:04:00 AM
From: Big Bee   of 19331
 
ST, I believe the hard questions begin with the European expansion as
a long distance carrier. This is what DCI is being trumpeted as in
the Corinthian Report and this is where I see a void of detailed
information and alot of take it on faith. It looks easy on paper but
when I research potential competitors such as Viatel (VYTL) who have
been following a similar strategy in Europe for the last several years
(but no voice telephony due to regulation), I see that they have had
to spend huge sums on infrastructure like switches in cities all over
Europe and laying fiberoptic cable. VYTL is currently, short term
experiencing large losses. I understand that DCI leased line strategy
is supposed to be low cost but they still need switches and I suspect
they are not cheap (I don't know what they cost yet but am trying to
find out). They also need to market their product over there.

Some of the stock price deterioration could be due to some not seeing
the dollars in place to finance the expansion. The focus on this part
of the company I think is overshadowing the positive news on Cyberfax,
PEL, and wireless probe. This is conjecture but perhaps there is worry
about dilution, so some could be holding off buying in. Personally,
I am not so worried on that tack because Mr.Murphy has shown so far a
consideration for the common stock holder.

I'm not done doing my diligence on the European expansion. I hope to
be back when I learn more.

Greg
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