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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: Ken Salaets who wrote (1270)	11/4/1997 9:53:00 PM
From: JOE MEDSKER	Read Replies (1) \| Respond to of 19331

KS, I'm not an accountant but its kind of like a dead asset that can hold down earnings. Most companys have good will on the books to help out the balance sheet. When DCI bought the assets of CardCall a lot of good will came with them. Maybe Lou can better answer you. I do know that DCI's balance sheet will now look a lot better to NASDAQ or AMEX. Best Regards

To: Ken Salaets who wrote (1270)	11/4/1997 10:12:00 PM
From: LT	Read Replies (3) \| Respond to of 19331

Hello Ken, Goodwill can be many things. In the case of DCTC, it has been the price paid by an acquiring company for the products and potential of the acquired company. That "po" price is written into the books as goodwill. It is actually a non-asset until the "po" is realized. I think it is glaringly apparent now that CardCall had the "po" worth the goodwill paid for it. To be able to write it off in such a short time is truly amazing as most small companies never get the chance to write goodwill off. From an investors standpoint, we now have a company with a much stronger balance sheet which puts us in an even better position if and when we are the target of an acquisition. We would now get full value instead of price - goodwill. Hope this is of help..... Lou