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

To: Secret_Agent_Man who wrote (940)	3/28/1998 12:20:00 AM
From: Sam Lee	Read Replies (1) \| Respond to of 7703

The only reason the stock is this cheap is because of the short manipulation that has now been resolved.If we have a competitive product and lucrative contracts then we don't have to worry about when to sell.We will be bought out.Jimmy,a UCLA graduate,had probably rather be a rich promoter than an everyday CEO.My guy says margins are potentially very high and overhead is mainly a telephone and a plane ticket.He says,"We just attach our thing to their stuff.Simple."It is not like we have to launch satellites or lay cable.The trick to this deal is getting there first ,which Jimmy is doing.About one in ten of these little companies ever develops legs,but this one might.The S&P is selling at 26 times 1997 earnings and I think this will do as well or better once we report so that growth projections can be made.My guy says to look for favorable 3qtr98,because it may take that long to get the pipe line flowing.In the mean time how about a stockholders meeting at our new office building.And I say to look for Jimmy on CNBC later this year.Just my opinion.

To: Secret_Agent_Man who wrote (940)	3/28/1998 2:32:00 AM
From: Sam Lee	Respond to of 7703

What are the terms of the Dharma $60 mil loan? Jimmy has 11 mil shs. If Dharma gets stock then they will have to pay $5.50 per share to have less than Jimmy. Either that or Jimmy has a whole lot of cheap options he can exercise to remain majority stockholder. There is obviously more stock authorized than has been issued.The 17.2 mil currently issued is not fully diluted.The only way our proportionate piece of the pie stays the same is if additional stock comes to market in the form of a split or stock dividend.Dilution will adversely effect earnings, price and our percentage ownership.We are getting this run because earnings expectations are high and stock is scarce. I know that Jimmy does not want to do anything to hurt the stock price,but I believe that we will own a significantly smaller percentage share of DGIV down the road than we do now. Help me with this thought if you can.I do not look forward to becoming an even smaller spud in the potato patch.