Laz and RocketMan: Thanks for sharing. I agree with your comments and think that we'll learn more soon.
IMHO, DGIV should have been able to get venture capital support for their vision in the IP telephony world. The leading venture capital (VC) firms would have required a solid business plan and a significant portion of the equity to come on board. Yet, the top VC firms can bring incredible expertise, extensive contacts, and significant capital to a new entrepreneurial venture. These firms KNOW how to generate value. When they take a company public (like AMZN, YHOO, CSCO, MSFT, DELL, etc...) they go right to the nasdaq and instantly have institutional support. They will also help build a management team that can handle hyper growth. IMO, DGIV would have been much better off coming to the public market in a different way.
Oh well, lets deal with the current situation. I will continue to hold my shares since I believe in DGIV's great potential. There are some major obstacles that need to be overcome. Many of them have been spelled out by Laz, RocketMan and others. Yet, I believe all of the bad news (and then some) is in the current price. It may be wise for Jimmy Chin to pursue a merger with a nasdaq company that has complementary capabilities. He may have to give up some power and control but he could focus on what he is very good at. This new entity would need a strong Chief Operating Officer and an appropriate infrastructure to support SIGNIFICANT growth in the next decade. DGIV could still be a pioneer but maybe they need to form a major partnership to make their vision come to life.
These are thoughts that are on my mind this morning.
There are other possibilities for DGIV. It could remain independent, do the required filings, create a strategic alliance with a major telecom company, build out the management team and infrastructure, and transition to become a strong nasdaq company.
I'm cautiously optimistic about DGIV's prospects....LONG TERM.
-Scott |
