Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : DGIV -- Good Prospects? -- Ignore unavailable to you. Want to Upgrade?

To: Secret_Agent_Man who wrote (582)	3/22/1998 7:02:00 PM
From: sandstuff	Read Replies (1) \| Respond to of 7703

Here's a recent write-up by DGIV's IR... Digitcom Breaks Down Long Distance Barrier ÿ For investors searching for larger growth rates and longer term growth periods have very few options available to them. Telecommunications has been and will continue to be a solid growth area for the next few decades. Most of the domestic telecommunications companies growth rates are slowing to the 3-4% growth rates per year. This means investment opportunities will be limited more to income and capital preservation than to solid growth opportunities in the domestic carriers. International telecommunications growth rates have moved above the 25% rate for 3rd world emerging countries. Emerging Asian countries have experienced growth rates of 28%. Middle eastern countries have had 22% growth rates except for Saudi Arabia and Kuwait which are growing at 34% and 37% respectively. South American countries have been experiencing growth rates of almost 23% annually and growth rates are expected to rise to 25-30% per anum over the next 5 years. The former Soviet Union is expecting growth rates of 40-50% since most of the phone systems were installed back in the 1950's. Any company who can capture market share early will reap the rewards of those high growth rates later. Politics in third world countries determine who gets contracts, not the size of the company. To gain the acceptance of the local telephone companies and the governments to grant the telecommunications license, the phone company must provide the country benefits they do not already possess. What separates the big companies from the smaller ones and who will gain acceptance in these countries? To answer this question, we must examine what the countries need and what the companies can offer. Most 3rd world telecom companies cannot afford the telecommunications equipment needed for expansion. Many telecommunications firms want too much control of the local networks for the comfort of local governments. Most of the third world is still controlled by military or governments closely guarded by the military. The military leaders in those countries do not want outside companies in control of their internal telecommunications. That is why AT&T, MCI and other large conglomerate firms have not been successful internally in these 3rd world countries. Most of them are partially controlled by the U.S. government or at least backed in part through alliances with the U.S. government. The companies who will be successful are not the sales firms who only want to sell equipment. Nor will it be the companies who need total control over their networks. There is one company who has the marketing plan which addresses these issues. Digitcom of Santa Monica, CA (OTC: DGIV) has the political problem solved. Digitcom is a long distance telecommunications company specializing in international long distance. Digitcom's teleconnect system enables users to save almost 50% over other long distance companies on international calls. The fax program and the voicemail system that Digitcom offers will route calls and messages reliably and cheaply at a savings of 35-50% over other long distance carriers. Aside from the obvious benefit of savings, telecom companies in 3rd world areas have other reasons to give Digitcom contracts. Digitcom's marketing plan calls for Digitcom to partner up with the local telephone companies in the 3rd world country. Digitcom will provide the cash for an equity stake in the local telecom company for that company to purchase the necessary equipment. Digitcom will provide the necessary training and expertise for that company to implement the systems. As well, they will provide these local companies access to Digitcom's proprietary international long distance networks. Aside from these distinctions, Digitcom offers investors other reasons for investment, such as its undervalues state against earnings and revenues. Digitcom had revenues of $5.4 million in fiscal 1996. Most other stocks in international telecommunications are trading at 20X revenues which would put Digitcom's stock at $9.23. This makes Digitcom's stock undervalued by 5X. Digitcom earned $0.21 per share last year and is currently trading at 5-6X earnings. Most other international telecommunications companies trade at 50-70 times earnings which would put Digitcom stock at $10-14 per share. Currently Digitcom is trading at $1.10-1.25 per share. Investor risk is minimized at this point by the standard trading patterns of other international long distance companies. Due to the marketing plan and profile of Digitcom, researchers and institutions should soon realize the benefits of purchasing Digitcom's stocks. (Cheryl Mitchell is an employee of Liberty Capital you may reach her at 1-360-676-8072.) ÿ ÿ

To: Secret_Agent_Man who wrote (582)	3/22/1998 10:50:00 PM
From: lazarre	Respond to of 7703

Interesting possibilities. Be more interesting if there was any info re: DGIV's number of employees, key personnel, and other odds and ends you usually can pick up on the net, stuff that kind of fleshes out the details most people look for prior to shelling out a chunk of change for some stock. Only info I've found has been from company releases ( grain of salt city ) and this board. Any illumination here? Appreciate. Lazarre