Non-shareholder's visit to Digitcom (with proof of signed contract mentioned in recent newsletter):
Message 6968498
To: Rob Weaver (34876 )
From: MoneyBaggs
Thursday, Dec 24 1998 7:19PM ET
Reply # of 34972
*****PLEASE READ*****
As promised, today I visited the DGIV offices, and met with Jimmy Chin for just over 3
hours. Jimmy was very cordial. The one thing that impressed me the most about Jimmy
was the fact that even though some of the questions that I had were very uncomfortable
for him, he avoided nothing, and was very candid in his responses. I came away with
great respect for the man.
The office is in downtown Santa Monica. Playboy Studios is two doors down to the
west, and MGM is just a block east. Not a cheap neighborhood by any means.
Today was a short day at DGIV for those working. Many had taken the day off. In
total, I would guess that I saw 10 people working. In addition to meeting Jimmy, I met
Allan Morinoue, the new CFO.
Jimmy explained in great detail to me just what DGIV's game plan is, and how he is
progressing. He explained to me a lot of details about voice over IP, and what part of
the market he is going after. He told me about the successes that he has had, and also
about the failures.
One thing that I requested was the opportunity to view for myself the contract that was
mentioned in the letter to the shareholders. Jimmy allowed me to read the contract in
full. Although some may doubt the validity of the contract because of past statements
and disappointments, I can vouch for the fact that it does exist.
The party that the contract is with has asked that the details or existence of the contract
not be made public at this time. Soon enough it will be made public. I am not at liberty
to say who the contract is with, although many here already have a good idea.
The contract is much bigger than one might think; not so much in dollar value, although
that is good too, but in obtaining new contracts. Other prospective customers are very
interested in DGIV, but have been waiting for someone else to be the first to step up to
the plate and sign on the dotted line. That has now been done, and others should now
follow.
I asked Jimmy what this contract alone would be worth in dollars and cents, assuming
that it did not help persuade anyone else to sign. Even though discounted greatly as an
incentive to be first to sign, this contract should bring into DGIV during FY 99, a
minimum of $2MM and could be as high as $10MM. Not bad at all.
The installation of equipment is scheduled to begin in early January, and the revenue
stream should begin by the end of the first quarter.
Here is a picture of Jimmy holding his contract:
twinjet.simplenet.com
Don't bother zooming in on it. You can't read the contract. LOL.
As I stated yesterday, I am not a current shareholder in DGIV. Based on my experience
this morning, that is going to change. DGIV, in my opinion only, is not the rocketship
that many claimed it to be in the past. There was no way that DGIV deserved to be at
$8 share. This is a young company, led by a very ambitious CEO who has a vision. In
time I think DGIV is going to do very well. When DGIV has enough contracts in place,
with a continuing revenue stream, you can almost bet that they will be a prime target for
a buyout by one of the big boys.
As to the SEC filing, or failure to file, this area was probably the most painful for Jimmy
to talk about. I believe that this is Jimmy's biggest letdown. The reasons are many,
starting with a CFO that jumped ship for a better job offer in mid stream, along with
disagreements between lawyers, and the list goes on. Don't look for a filing now before
the end of 2nd quarter 99. By that time, DGIV should be able to report some pretty
nice financials.
Here's wishing all of you a very Merry Christmas. I hope my visit makes some of you
feel a little more comfortable with your investment. |
