Without an audited financial report, there's simply no way of knowing the financial state of a company. Here a couple of points:
* Contracts can be announced, but in the course of business, the full value of the contract may not be received. Contracts routinely call for lopping off parts of the contract due to failure of one party or the other. Also, there are conditional parts, such as "Company X agrees to sell #### of widgets to Company Y, on the condition that Company Y obtains adequate financing to purchase the widgets."
* How much profit a company makes on its contracts will only be known in its financial reports. You have all kinds of things that could go wrong: under estimated R&D costs, unanticipated legal costs, dependence on unreliable suppliers, etc.
* Your multipliers of 20 and 50 are suspicious, particularly given the source, a paid promoter for DGIV. That brings up an important question: Why does DGIV need paid promoters for its stock? Digitcom has used at least 3 paid promoters to push its stock - Leibman & Oesch, Liberty Capital, and now, World Vision. If the company was so great, wouldn't big brokerages in the technology field, like Alex Brown & Co., be beating down their doors trying to get the business?
Paul M. |
