AOL, continuing...
Subj:
Re:Dominican Cigar Company
Date: 97-08-27 15:16:30 EDT
From: BayStock
DaveLexus, I am definitely a sceptic at this point. Its premature to even think of touring the factory. After all what would have been the point of touring Santa Elena. First we need to know the terms of the reverse merger between PowerPhone and the Dominican Cigar co. and what their growth prospects are. From what I see now, there is nothing to be excited about:
1) they own 50% of a factory with a SUPPOSED value of $2.9 million. So TACN's share is $1.45 million. Assuming 18 million shares outstanding at 40 cents per share, TACN is selling for 5 times book value.
2) With current revenues SUPPOSEDLY at 76,000 per month or 900,000 per year, TACN is selling for 8 times revenues.
By both of these measures the stock is very expensive. Also in another
message you mention that they bought a second factory. I don't recall seeing a press release on that. Where did they get the cash and what were the terms
? - BayStock
Subj: Re:Dominican Cigar Company
Date: 97-08-27 16:27:16 EDT
From: E clips111
A few questions:
1. Why is this company in the cigar business?
2. What do they know about marketing and selling cigars?
3. How are they financing this business?
4. How will they compete with other cigar makers?
5. Why should we expect them to be successful?
6. Who is the managent team at TACN now.? What is their background?
Geez, I'm just getting started...I hear lot of pie eyed optimism here about a company that has said everything and not "shown the money"...I'm more than skeptical...I'm laughing
Subj: Re:Dominican Cigar Company
Date: 97-08-27 17:11:10 EDT
From: DavesLexus
Baystock:
My optimism is predicated on the "boom" we are experiencing in the cigar business as whole. It just does not seem to slow down.
Don Platten ( and his group) are all experienced cigar people. This company is 98 years old, so someone must know a little something about making good cigars. Don claims to run a very tight ship and likes to make high profits (47%). The Adolpho deal is a deal that could generate $3 to $4 million in revenue first year, and, they have others working which I think have real promis.
Supposedly, we will have a stockholders meeting ( and financials) by mid October. Don knows we have had promises before, so he is cognizant that there is a real need to deliver.
As you know, his ( Don Platten's) e mail address is public information. He wants to answer eveyone's questions and concerns. I would (strongly) suggest everyone communicate with him as much as possible.
Also, there is a fairly large float ( I guess) but if he can show strong revenue and profits, then at these prices that float becomes a very good buy.
The more I hear from these people, the more I think they can make this go. It will, however, take some time. I have a fairly low average price, and I fully anticipate making some nice profits with this, hopefully, in th next six to twelve months.
Don will answer appropriate questions, and he is planning on a mailing of some cigars to all stockholders sometime in the near future.
So... after the "disaster" we had after getting into this, I just feel this company have people working on "real and legitmate" deals. I don't mind waiting for real value but our investment seemed like it was heading for a sink hole before this change.
Let's suppose this company gets up to $8 to 10 million, which in this cigar market has great possibilites. This company has the wherewithal to make a lot of cigars. If Don is serious about a GPM of 47%, then this will start looking real good.
Regards
daveslexus
Subj: Re:Dominican Cigar Company
Date: 97-08-27 18:29:04 EDT
From: BayStock
DaveLexus, Don Platten & group maybe experienced cigar people but they don't seem very shrewd when it comes to the stock market. Otherwise why would they associate their cigar company with this Powerphone dog which has such a huge float out there. This deal still does not smell right, or is that Ringer laughing thru his ass again - BayStock
Subj: Re:Dominican Cigar Company
Date: 97-08-27 20:12:41 EDT
From: DavesLexus
Baystock:
I just cannot agree with your assessment of the Powerphone people. The Dominican Cigar people would obviously not agree with you either. Again, the float may be high, but at these prices you can chew it up pretty fast with some good buying.
We will see some good buying with some strong revenues and profits. Again,the company claims we will see evidence of that soon.
Culturally, cigars are becoming the new "in vogue" thing to add to that after dinner drink. You owe it to yourself to pick up a copy of Cigar Aficanado.
Just to repeat myself:
!. This company makes a very high quality product
2. It is very high profit oriented (47%)
3. They have great marketing skills. It is what Platten does best
4. They have the ability to make a lot of product
5. The cigar imports in 97 will be close to 600 million. Up 100 percent from 96
Now hind sight is 20/20, so everyone that got in this a year ago probably wishes they had not, but we all know the risks...especially in these small caps.
I think this company has a very good chance of really making it now. I have bought this stock regularly, and I have my average down to very decent levels so no reason for me not to be optimistic.
regards
dave
Subj: Re:Dominican Cigar Company
Date: 97-08-27 21:08:06 EDT
From: Snowball07
I believe that when the Dr. Reyes merger dissolved, he lost all his shares. That would bring the float down to the 8 million range and dramaticaly changes the PE ratios, etc.
Further, with the cigar company becoming a public entity, it enhances its opportunity for rapid growth and the opening of new markets.
Who knows. This may become a hot stock. The Adolfho deal is with a major league company.
I am not particulary impressed with Latin American enterprises. Cigars, however, would be an alost singular exception. Particularly, since the Dominican Republic is where today's finest cigars are grown, cultivated, manufactured, etc. The hand made aspect is a great plus.
Looking at Cigar Aficianado ans Smoke magazines, there is no question that this is literaly an explosive market. The trick here is having aged tobacco. If my understanding is correct, they have, on hand, reserves for the next 18 months or so.
Subj: Re:Dominican Cigar Company
Date: 97-08-27 21:29:17 EDT
From: PDGreen
An interesting thing that will probably happen as all penny stocks go is that if there is a strong upturn in the company, they would just do a reverse stock split. I hvae no problem with this. Well, I am certainly shoving my shares in a desk and seeing what will transpire in a year. Couldn't do any worse than the last one. I have done some checking on Don Carlo cigars, and if it is the same Don Carlo company I researched, well, they were one of if not the first cigar producer in the Dominican republic. I will sit back and see what happens. Good luck to all and happy investing. I will sign off for the next few months. BYE!!!! |
