DCTC is the next stock that should soar higher: *DCTC*
DCTC is DCI Telecommunications, Inc.
OTCBB: SEC reporting company
Friday Close of DCTC: $1.56 X $1.65
Business Summary (Yahoo):
DCI Telecommunications, Inc. is engaged through its operating subsidiaries in long
distance telecommunications, prepaid cellular and Internet related products and
services. For the nine months ended 12/31/97, net sales increased from $1.1 million to
$6.2 million. Net loss from continuing operations increased from $172 thousand to
$851 thousand. Revenues benefited from the acquisitions of several companies. Loss
reflects costs associated with the acquisitions.
Recent Business summary (via DCTC):
DCI Telecommunications is an international supplier of telephone services
including long distance service, prepaid cellular and Internet products. The
company has an extensive distribution network throughout North America, Europe
and the Far East and owns telephone switching facilities in Canada, the United
Kingdom and Denmark. The company, which recently reported sales of
$4.6 million and $1.3 million in profit (or 13 cents per share) for the first
six months of fiscal 1998, has twelve operating facilities serving customers
in eight countries.
52 week low is $1.31
52 week high is $4.63
Shares Outstanding: 14.4 M (Before company buyback**)
Float (Free trading shares): 10.3 M (Before company buyback**)
**"STRATFORD, Conn., Jan. 21 /PRNewswire/ -- The board of directors of DCI
Telecommunications (OTC Bulletin Board: DCTC), an international supplier of
telecommunications services, has authorized the company to repurchase up to
$5 million of the company's stock commencing January 29, 1998. There are
approximately 14 million shares of DCI common stock outstanding."
Third Quarter results in Feb 98 showed 12.7 mil weighted shares outstanding.
Book Value: $.85/share
Frequency of News Releases: Averaging once every 2 weeks.
News released on DCTC on April 2, April 3.
Why buy this stock?
First, it is undervalued. We are only trading at 2 times current book value.
Even chartists have to admit that this stock should be at least $2 a share.
Look at a one year chart.
Second, DCTC is aquiring valuable communications companies (companies that have
made profits in the past)
Third, Like DGIV... these guys are buying back stock in their company. They know that
it is worth more than it is currently trading at, and they are putting their money where
their mouth is. $5 million in buyback a lot of confidence.
Fourth, This company is paying out a dividend! How many high growth companies are
paying out dividends? How many OTC:BB stocks are?
"STRATFORD, Conn., Jan. 26 /PRNewswire/ -- The board of directors of DCI
Telecommunications (OTC Bulletin Board: DCTC), an international supplier of
telecommunications services, has declared a special cash dividend of one cent
per share on the Company's common stock. The dividend is payable on
March 23, 1998 to stockholders of record at the close of business on
February 23, 1998.
The dividend, which is the first in the company's history, is the
company's way of giving back to its shareholders and allowing them to share in
the continued success it has been enjoying. Payment of the dividend will not
have an adverse effect on the future cash requirements of the corporation."
Fifth, Back to Aquisitions. A lot of their new revenue/sales are coming from these new,
profitable aquisitions such as the one just announced late Friday afternoon in trading:
"STRATFORD, Conn., April 3 /PRNewswire/ -- DCI Telecommunications, Inc.
(OTC Bulletin Board: DCTC), an international supplier of telecommunications
services, announced today the signing of a letter of intent to acquire
privately owned Payless Communications, Inc., a long distance supplier out of
Santa Ana, California. Payless is one of the fastest growing long distance
and calling card companies on the West Coast. The transaction, with an
expected valuation of $10 million, involves a combination of DCI stock and
cash. The structure will be incentive based, the stock portion is directly
tied to earnings per share requirements and the cash infusion will primarily
be used for capital expenditures and to a lesser extent, operating capital.
Currently, Payless did $5 million in annual sales, for the 12 months ended
December 31, 1997. At present, it has 32,000 customers and is expanding at a
rate of 3,000 new customers per week. Annual revenues are expected to
increase to approximately $20 million by the end of the fiscal year."
Sixth, It's 52 week low is $1.313 and it is trading from $1.50 - $1.68.
I see very limited downside to this company. I see only a .30 drop to the downside
based on 52 week lows... unlimited potential to the upside.
Seventh, What is the trend? Read the news releases for DCTC (like in DGIV)...
Are they trying to create a small communications empire? I think so.
WAST -a waste company- also did aquistion upon aquistiion upon aquistion. DCTC
may not be this aggresive. But note, WAST went from sub $1 to above $2 today during
this phase of theirs. Despite the costs of the aquistions.
Eigth, A professional looking web site. It has all their past news releases dating back to
early 1997. Graphs, Income, data. A 1-800 Investor hotline. Looks professional.
Summary: Stock Buybacks, Dividends issued, Profitable Aquistions of subsidiaries,
Net income of 1.3 million, Revenues of 6 million, Low Float, Low Outstanding shares,
Good company plan/trend, Limited downside in price based on 52 week chart.
Here is its main website: dcic.com
Like DGIV, this is a long term hold.
My goal on this stock is $2.50
(If you know me and my goals, I like to pick something obtainable in a short period of
time that seems reasonable based on the stock - I try not to WOW you with a $15.00
one year goal).
Good Trading Monday!
-DavidCG
It finished up 8% on Friday, I took a position at $1.625 |
