To: Laz who wrote (2826 ) 5/15/1998 5:07:00 PM From: myturn Respond to of 25711
DCGR will have continued exposure over the next couple of weeks and in my opinion is still at bargain basement prices. I've been evaluating this stock a little bit over the last several days. Touched base with Dennis Thomas and Scott Gnatt this afternoon. I like what I am hearing, yet I'm skeptical as always. This is the story as I understand it: We've got a Vegas "Money" show next week at Bally's running from May 13-15th (with another "Money" show in Chicago running from June 12th-14th), with the DCGR CEO Dom Pladdon (sp?) in attendance. This will be followed several days later with a television show in Los Angeles on Business News Channel 22, which has a viewership of up to 6.5MM households. The letter of intent with Santini's(sp?) Deli in Florida has been signed. Agreements are forthcoming. Santini's did $4MM+ in revenue with $1MM to bottom line. They are intending to be fully SEC compliant and reporting by the end of this month. There are 11.5MM shares out, with about 5MM shares floating. There are approximately $5MM in assets, with a book value approaching $.5. Earnings projections for 1998 range between .17$ and .20$ per share. Walgreens cigar rollout will be pushed nation-wide, with CVS Drugstores negotiations continuing. CVS might add up to $2MM in revenue with 10-20% to the bottom line if the agreement comes to fruition. Dom's intention is to diversify the company into the restaurant arena. As such, the name of the company will be changed shortly to remove the "cigar" reference along the following lines: "Dominican International Holdings" (maintaining the current stock symbol). This will tie in with a new theme restaurant, with franchise licenses for which bringing in $25k fixed fee per license with 3% sales revenue sharing. 10 of these restaurants in the next 18 months. The company is indeed debt free right now. Financials forthcoming to include calendar year 1997 and first quarter 98. Dominican will be the featured cover/story in the next month's issue of "Stockbroker's" magazine with 25,000 brokers/traders in circulation. Further, the company will have a featured article in "Opportunist" with 250,000 copies in circulation and a pass through read rate of 2.3 times, or about 750,000 readers in all. They "believe" the stock is extremely undervalued and should be at least book, or about .50$. They "believe" that the stock value should be $2 right now or at least achieve that over the next year, with proper marketing. They are hoping to achieve full NASDAQ certification. That's what I heard. Let me tell you what I think: The Publishers, Scott and Dennis, aren't true IR guys. They are marketers, pure and simple. Scott came from several brokerage houses, so he knows the game quite well. These guys are compensated by cash and share rights which reward them when the stock achieves certain milestones. For the most part, they need to get this stock value over .5$ per share to make some real cash..... I asked for examples of their work. They pointed to RADIF, or Rata Electronics, which was at $.93 when they took over in February and is trading at $2.5 or so now. As Scott mentioned to me though "we are focused on DCGR now as our top priority". My impression....gamble and hold at these levels. Better to be bought once audited SEC financials are available. Either way, this stock should make a run over the next couple of weeks IF this story plays out to plan. There is a press release due sometime Wednesday or Thursday which will add 2-4 million dollars a year to DCGR's bottom line. This press release is one of 5 press releases due out by the end of May.