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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today

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To: Bruce Galpeer who wrote (10023)	10/31/1998 7:23:00 PM
From: Grantcw	Read Replies (1) of 19331

Bruce, One piece of work my friend. Though I've been a stockholder for close to 1/2 a year now, I still learned some things from your summary. For example: DCTC has an amazing number of revenues projected for the next year. EDGE was a small profitable company that had developed a niche market for it's product. The company was purchased doing $8 million in TTM revenues and a FTM of $12 million. EDGE has not stood still from when the deal was completed in May 98. A number of new contracts have been signed by EDGE bringing it's current run rate to over $40 million in FTM revenues. That does not include the recently released news of an additional contract with Latin Debit Technologies of Florida valued at $48 million. With the acquisition of EDGE Joe Murphy was introduced to Serg Aldo of TimeWorldComm also in Gaithersburg, Md. TWC does long distance carrying traffic in Europe. TWC recently won 2 contracts in Europe totaling more than $350 million. The problem they had was they had no way to carry the traffic cost effectively. In steps Joe Murphy and DCI with it's already established switches and a leased line network. A JV was struck between the 2 with DCI receiving 51% of the revenues and TWC 49%. This happened Aug. 31, 98. We've got $40 FTM revenues + $48 from LDT + 175 from half of the TWC deal = $263 projected annualized revenues once things get going. This is not a conservative estimate, but it sounds close to rediculous considering we only have a bit over 20 million shares. Can someone tell me where my calculations messed up? If Joe sells this company for a revenue multiple of 1, won't we go for over ~$15 a share? What about the fact that we've always assumed a multiple between 2 and 2.5 of revenues. I don't even want to scare myself with the calculation of our buyout price there. I realize these estimates aren't conservative, but they seem the most realistic if we can rely on the press release estimates, eh? Can we get rid of our $10 hope and push for higher realistic buyout price now? See ya, Grant

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