To: george eberting who wrote (4818 ) 4/13/1998 8:22:00 AM From: Dean Dumont Read Replies (1) | Respond to
Investment decisions are based on research and not by influence of others. If this company is conducting its acquisiton with stock cash and options, as well as earn out, the 8K on each deal will reflect the program on HOW they have been completed. Options are a standard use in all acquisitions. Here's why. I have read all in coming posts to this string and no one has mentioned the earn out performance that each company must deliver as a part of the buyouts. Mr Murphy has done a great job in the negotiations with each of the deals for the fact that, yes the issued and outstanding shares will go up, and the offset to that is the OPTIONS/WARRANTS. HEY, Issue 1,000,000 shares RESTRICTED, with $5.00 options is great, plus the earnings performance. This takes away the hit to the P & L and offsets any earnings/share hit the company may or may not take. If you buy a company for $4 million and issue $5 million in options/warrants, you figure it out. its very simple to see that not only is this company going to be reflecting the new sales of the companies being acquired but when options and warrant are exercised they MUST BE PAID FOR!!! And to who, DCI Telecom. For a small company under $100 million to conduct this type of business is genius. So who really cares about issued and outstanding shares when your balance sheet is hedged against any losses from buying out these companies. Mr. Eberting, I have read your post here and will tell you know that if you do YOUR OWN homework, and not LISTEN to the influence of certain individuals you will see the creativity and desire for this company to grow and expand, as well as create better shareholder value. DCTC has $0.13 earnings per share and as a TelCom company its industry multiple alone states that DCTC could trade at $2.60 per share. MM look at it as $1.30/share. Do your home work Mr. E, whining and half baked apologies are not condusive to the business at hand.
