For Those New to DGIV:
"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.
Balance Sheet Assets- $7.0 million Revenues - $5,403,564 million
Debt- $0 Earnings- $0.21 per share
Symbol- DGIV Shares Out- 11.7 million
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.
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