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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today

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To: Pr-Ac Man who wrote (2876)2/16/1998 5:40:00 PM
From: george eberting  Read Replies (1) of 19331
 
CASE IN KIND >>>>>>SMARTALK... using all their available cash to BUY
distribution and revenues, sales of cards rising, more air minutes being............


Actually, SMTK used a lot more shares than cash to buy CardCall UK from DCTC. It was an 8 to 1 ratio.

And, even if we use treasury stock, if DCTC shares are trading at $5.00 or more when they are used to acquire a new company, it will take a lot fewer of them than if DCTC were trading at $2.00. And I believe the buyback program has the best chance of stabilizing (and maybe even raising) DCTC share price in the next couple of months.
Growing EPS certainly will help, too, but we know that Cyberfax revenues haven't really kicked in yet, and the new switches in Europe probably aren't spinning huge amounts of revenue now. So, if revenue is still a little pokey, the next best way to raise EPS is to reduce the number of shares outstanding.

I agree that this is not a proper forum for members of management to air their disagreements with one other. (And I was one of the two or three who suggested that management probably should not be posting here nearly so much. I told ya so!!!!!!!!!) George E.
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