I am posting what I just received from Liberty Capital. This may be old story for a lot of us.
From: Liberty Capital
Subject: DGIV Buyers Packet
Date: Wednesday, March 18, 1998 12:49PM
@ "Creating Value in Today's Market Place"
Strategic Partnering Is Key To Digitcom Expansion!
Digitcom Interactive Video Network or DiV-N, (DGIV-OTC) is an international long distance service company who works as a partner with the local telephone companies to provide the least expensive call alternatives to the customers of that telecommunications company. Digitcom has developed a system which will create an entirely new market within the call routing industry. Their sales force has been active in recruiting local phone companies internationally, and hope to have worldwide deployment within 5 years.
Digitcom has patented their software which places them in a proprietary position and gives them a sizable first mover advantage.
Because of their unique partnering position, Digitcom has been able to secure better and longer term relationships with suppliers of dialtone.
Other callback companies sell the software to these clients in a retail
transaction and have a superficial buyer seller relationship. Digitcom
becomes a strategic partner with its clients, through equity capital, to
implement Digitcom's system. This allows Digitcom to access a larger
customer base and brings equity capital to the baby bell companies for expansion of their capabilities and client base. Digitcom is able to offer the most competitive rates and eliminate competition due to their patented software. They will receive revenues both from the increased customer flow, and also from the appreciation of the equity stake in the partnered baby bell which Digitcom is helping to build.
On a conservative basis, Digitcom is expecting revenues in excess of $30 million dollars for the next fiscal year. Profit margins have exceeded 14% so far this year which is excellent by any industry's standard. Their earnings per share were $0.21 which, on a conservative basis with a 50X multiple, they should trade at $11.00 per share. This means they are currently undervalued against industry norms on earnings as they are only trading at 6X earnings. They should trade at a market cap of 20X revenues or $100 million plus on the market cap and $9.23 per share. This means they are undervalued against revenues and market cap and should not be trading at 3X revenues as they are curently.
Management:
Jimmy Chin CEO
Mr. Chin is a graduate of UCLA with a degree in Economics. He has a wide range of experience and entrepreneurial background. Innovative from the beginning, under his management Digitcom quickly gained a reputation for designing value added applications for industries. Winning Teleconnect Magazine's Product of the Year with his Resound system set the stage for further growth into multimedia applications for business telecommunications.
Mr. Chin is also a published writer for telecommunications with articles
including "The Future of Voice Processing", Teleconnect Magazine, and "Video Multimedia in the Hospitality Industry", Voice Processing Magazine.
Robert Cumming President
Working with companies such as Keystone Partners, Calfont Corporation and City Investing, Mr. Cumming has held positions as CEO, Partner, and General Manager. His accomplishments include generating an 82% return on investment for stockholders in a newly acquired company, rescuing a telecommunications company near bankruptcy, converting losses of near $1 million to profits over $800,000, and accelerating development of an acquired high tech company, increasing business and selling for $10,000,000 profit in eighteen months.
For more information, please call Jo Elkins at Liberty Capital Group, Inc.
at 1-800-371-9117 or 1-360-676-8072. You can also see us On-line at
www.libertycap.com/liberty. |
