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

To: Dean Dumont who wrote (5957)	5/22/1998 1:52:00 PM
From: Sun Tan	Read Replies (1) \| Respond to of 19331

OFF TOPIC - when you start implying that Canadian currency isn't real currency, I have to say you're hitting on some of my patriotic Canadian nerves. At least Canadian paper bills have more than one drab colour of green. And, just like DCTC, its just undervalued at the moment IMO. - ST

To: Dean Dumont who wrote (5957)	5/22/1998 3:33:00 PM
From: James Harold Alton	Read Replies (6) \| Respond to of 19331

bgtit, The total outstanding is a bit less right now, 19.5 million as of 5/18/98, which of course includes the shares used to purchase Edge with. Nonetheless, as you pointed out, if all of the $$ disbursed went into buying more stock, we would still have nearly 100K of buying. While not a perfect comparison with DCI since SMTK started with a Nasdaq listing and initial IB backing, I nonetheless think that it's somewhat interesting to compare the growth in revenues of SMTK versus the market price of it's stock to that of DCI's. Both companies are growing via acquisitions and both are in the phone card business, though DCI is more diversified in other areas as well. Here is a little SMTK history, it's a little limited because my time is also limited due to WORK..something has got to give. (G) Smartalk revenues versus time: Revs. for the quarter ended: Revs. Annualized Share price June 1996 2.5M 10M No shares Sept. 1996 4.6M 18.4M No shares March 1997 7.4M 29.6M $13.00 June 1997 11.8M 47.2 $16.00 The period ended March 1997 most closely approximates DCI's current level of annualized revenues based on what we currently know. Note that during this period SMTK lost 310K Net. It's interesting I think to speculate as to the reasons why SMTK's stock was trading during the 3/97 period at more than 6X where we are now. The question in my mind centers about where we would have been with our share price, if none of the Canadian CC shares had been sold into us. At the point in time last fall when the minority shareholders of CC began receiving and selling there shares, DCTC was trading North of $4.00. Over the course of about 4 months, 3.5 - 4 million shares were sold, which dropped us all of the way to $1.31 at the low point, despite the fact that the company as a whole continued to improve..it was just a case of there not being enough new shareholders coming in to absorb what amount to about a 35% increase in our stocks float. Fortunately due to most all of the unrestricted CC shares having been sold and through the efforts of management and others, the CC selling is now limited to a monthly amount that should have minimal impact on us and we are finally beginning to recover from that fiasco. The question in my mind, is had this CC selling not occurred at all, leaving us with a $4.00 share price, where would we be today with our share price once the companies recent accomplishments were factored in? It seems likely to me, that we would currently be well above the $4 level at perhaps at $6 given this situation, though there is no way to actually test this theory. At $6/share we would still be $7 below SMTK's stock price at this revenue level, which seems more than a fair discount given the fact that SMTK is listed and had IB backing early on. It seems to me, that our stock is going through a "healing" process as DCTC slowly rises from the low 1's into the low 2's from the long term hammering we took from all of the CC selling and that it takes time to restore investor confidence that: A. The CC selling is truly behind us. B. That the CC selling truly was the event (I am convinced of this myself at this time, based on the facts) that crushed our stock. c. That the recovery we have been seeing in our stock over the last several weeks is for real and will continue until we get back to a reasonable share price level. Just food for thought folks, I'll try to add more later if I don't get hit by too many tomatoes. (G) James