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

To: Ed Pettee who wrote (4611)	4/7/1998 3:59:00 PM
From: Brian	Read Replies (1) \| Respond to of 19331

Ed, Edge Communications is being bought with a combination of preferred stock and cash ('The transaction, which involves a combination of cash and preferred stock is valued at $8 million.'). Don't know if this will dilute earnings or not. Does anyone know anything about the preferred stock, what it's worth, and how it counts to the bottom line? Payless is being bought also with a combination of stock and cash ('The transaction, with an expected valuation of $10 million, involves a combination of DCI stock and cash.'). Don't know if either purchase will be dilutive as it will depend on what both are earning in profits. And remember that MGMT is EXPECTING revenues to grow at least 100% for both companies over the next year (this counts for something...). Is either company making money right now, don't know. Though if Payless has "... approximately 100 in-house sales and customer service force, backed by the addition of DCI's corporate resources.", you gotta know that it's got to be expensive. With only $5M in revenues, how are they making money? Even if they only paid these people $15K ($7.50/hr) a year, that's $1.5M just for customer service. Are they or EDGE in the BLACK, I hope so, but who knows. I do know for a fact that the margin on lease lines and and resale of prepaid services is low (I work for one of the big three) and you have to put a lot of minutes through to be profitable. If both companies have their own switches, that would be wonderful! Anyways, some food for thought, let me know what you think. Brian