To: elk who wrote (1678 ) 4/1/1998 8:47:00 PM From: Rick Read Replies (3) | Respond to of 7703
Elk - the big difference between DGIV and FTEL -- here you have great overseas marketing & strategy. This company has a unique policy of creating win/win relationships with overseas telcos and governments - where others cannot or do not want to tread. Also - the demonstrated ability to create strategic barriers to entry based on savvy strategy.. Also - this system is scalable to 128 ports (oops - make that 1296! tnks Byron..luckily there was still some "editing" time left...ha) or more vs. FTEL's 24. Also FTEL is only NT. This is compatible with NT, Unix etc. etc. etc. Also - Mr. Chin & co. have many more capabilities than just VoIP -- look at stuff "alluded to" on one of the pages re: an AOLish type multimedia/broadband worldwide service catering to businesses, with business content & consulting on-line. Heck - an even another indicator - they list AOL as an upcoming competitor... Just think of the impact for companies involved in international business development! + many many other things - but my fingers are getting tired of typing.. There are lots of hidden clues on the web site if you dig deep into it....(fairly deep if you explore all of it..) & lets see - DGIV has a much nicer web site (ha ha) & has at least 30 million worth of business booked this upcoming year with upcoming earnings (98) of 20 cents (making PE 15 vs. 50ish for the industry) (Liberty could get sued if that was not true...thus looks like it is STILL very undervalued) But we aren't even talking about the exponential increase from traffic yet to come in from Europe, Russia and Indonesia.. Give me DGIV anyday... (you know what FTEL's current finances are..) For newbies: Liberty states at:nas.com Digitcom Interactive Video Network or DiV-N, (DGIV-OTC), is an international long distance service company who works as a partner with local telephone companies to provide the least expensive call alternatives to that company's customers. Digitcom has developed a system which will create an entirely new market within the call-routing industry. Their sales force has been active in recruiting local phone companies internationally, and hope to have worldwide deployment within 5 years. Digitcom has patented their software which places them in a proprietary position and gives them a sizable first-mover advantage. Because of their unique partnering position, Digitcom has been able to secure better and longer term relationships with suppliers of dialtone. Other callback companies sell the software to these clients in a retail transaction and have a superficial buyer-seller relationship. Digitcom becomes a strategic partner with it's clients, through equity capital, to implement Digitcom's system. This allows Digitcom to access a larger customer base and brings equity capital to the baby bell companies for expansion of their capabilities and client base. Digitcom is able to offer the most competitive rates and eliminate competition due to their patented software. They will receive revenues both from the increased customer flow, and also from the appreciation of the equity stake in the partnered baby bell which Digitcom is helping to build. On a conservative basis, Digitcom is expecting revenues in excess of $30 million dollars for the next fiscal year. Profit margins have exceeded 14% so far this year, which is excellent by any industry's standard. Their earnings per share were $0.21, which conservatively with a 50X multiple, they should trade at $11.00 per share. This means they are currently undervalued against industry norms on earnings, as they are only trading at 6X earnings. They should trade at a market cap of 20X revenues or $100 million plus on the market cap and $9.23 per share. This means they are undervalued against revenues and market cap and should NOT be trading at 3X revenues as they are currently.