T,
The May 15th issue of the Ground Floor just put DCI on their buy list. This publication mainly concentrates on small OTC companies. At one time I subscribed and I do remember that they had a very good track record with their recommendations. The editor of the publication starts off by stating the overseas telecommunications market will be huge for many years to come. Many of the giant US firms have jumped in, but there's also room for some nimble small fry provided they know what they are doing. Our next company is quite speculative, but has the capacity to give a huge profit if its plans work out.
The article goes on to say "DCI TELECOMMUNICATIONS intends to exploit niche markets mainly overseas where it can avoid getting trampled by the giants. Mostly, this involves high-speed switching capacity and long-distance lines serving large users."
"From its overseas base in the UK, DCI is establishing a leased line network that will offer telecommunications services throughout Europe. The company is already operating in Denmark and Spain. Plans are in final stages for lines and switches in the Czech Republic, Luxembourg, the Netherlands, Hungry, Ireland, Italy and Portugal. In Southern Spain, DCI will be the only company competing with the former monopoly.
The report goes on to talk about CyberFax and how it is active in Asia and will be moving into Europe. They say that DCI's prepaid phone card business is somewhat specialized which should give them an edge and that this business can be tied to their budding telecommunications network. Some of the acquisitions are mentioned eg DataWave, EDGE and Global Telecom Network. They also mentioned Payless and Worldpass which Joe turned down.
They say" DCI has been a very small money-losing business. This is part of the risk, but also part of the opportunity. Management needs only achieve half its goals to foster a huge increase in the currently tiny market cap.
They recommend the stock be purchased under 2 1/4 saying it has bounced from the bottom but is still quite cheap.
This publication if I remember correctly will continue to follow DCI with a buy-sell-hold recommendation each month.
Best Regards |
