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

To: Grupo Brad who wrote (5750)	5/14/1998 6:38:00 PM
From: FARRIS	Respond to of 19331

Glad I sat on and added to all of my shares -- not quite a single stock portfolio, but headed in that direction... Eric

To: Grupo Brad who wrote (5750)	5/14/1998 7:08:00 PM
From: Pr-Ac Man	Read Replies (5) \| Respond to of 19331

To Anyone: I've been doing a bit of math, and I'm a little unclear about how we are going to make it to $10 a share at the buyout. If anyone can help enlighten me, I would appreciate it. As I understand it, our current situation is something like this: If/when all the stock options are exercised we will have about 22 millions shares outstanding. Add to that the 4+ million from the Edge deal and we're at 26 million shares with about $24+ million in revenues (according to the latest JHA estimate). That means we're about $75 million short of our 100 goal. Assuming that we make the necessary acquisitions at an incredibly low 1.5X's revenues, we're going to have to cough up $100 million dollars in stock or cash. Let's say it is 3/4 cash and 1/4 stock (at an average price of $2.50). That means we're adding another 10 million shares to bring us to a total of 36 million, and a cash debt of $75 million. OK, now let's say that someone offers us the projected 3X's revenues to buy DCI for a whopping $300 million. After we pay back the cash debt we're at $225 million. Divide it by the 36 million shares and that comes to $6.25 per share. Am I missing something here, because I'm not finding the $10 pot of gold at the end of the rainbow. I would still take $6.25 and leave with a smile on my face, but the target has always been $10. I hope someone can resolve this for me. Thanks. PA