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

To: Lee Penick who wrote (7400)	4/27/1998 10:10:00 AM
From: dwlima	Respond to of 7703

<<<How though, with a speculative company, do you go about making 7 year cash flow projections?>>> You take into account as many factors as possible (e.g., past financial info, market dynamics, market size, business strategy, regulatory issues, etc). then you make your best guess for the future years. when little historical data is available, the guesses vary more and hence a more volatile stock price. one last thing to think about. when a company obtains financing, whether it be equity or debt, these new stakeholders review these issues before deciding to make the investment. For example, i can assure that DGIV has laid out a solid business plan for Dharma to contribute $60M over X number of years. A business plan included projections for many years also. this is one reason why when a large company such as Dharma backs a smaller firm, the stock shoots up...because it is a signal that additional intelligent people (people in the business of lending) have reviewed the business strategies and have confidence in their new investment. so, Byron and i have made up. i have apologized to byron for blasting him on the air (was supposed to be a private message, but made a mistake) and byron has accepted my apology. now, for a new week. dwlima