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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today

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To: Kathy S. who wrote (7934)	8/21/1998 10:39:00 AM
From: JOE MEDSKER	Read Replies (1) of 19331

KS, It is some what redundant but that is ok. As a trial member you may not have read all the posts going back several years. I understand the formula for selling the company as follows; total revenues times a multiple of lets say 2.2 divided by the outstanding shares. But to ask this board to tell you what will be the exact number of shares outstanding after the deals are completed is just a bit presumptuous IMO. I don't think even Joe could answer that question at this time. Keep in mind we don't even know how many CC shares will be exercised by then. The multiples that are being used came from Houlihan & Co. which is a firm in California that specializes in M&A's. DCI sold their WH Smith contract to SmartTalk for 5 times revenues. As you mentioned, you did some DD trying to find companies that have been sold for 2x revenues but no luck. Since you did not indicate to what extent you did your DD it could very well be that there are some but you just did not come up with any. This has been discussed in the past quite often but IMO 2x revenues is not out of the realm of possibility. Best Regards

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