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

To: De Peepster who wrote (5985)	5/24/1998 6:59:00 PM
From: James Harold Alton	Read Replies (1) \| Respond to of 19331

Hi Peepster, I have been doing a little bit of exploring on the Net today and came across a couple companies that could be interesting to compare to DCI. GST is a Telecom company that is in the LD service business, provides internet services, calling cards and is partially growing via acquisitions. During the time period from 1995-1996, GST grew in revenues from 18.7 million to 41.3 million, so with DCI somewhere around the 25 million level on a conservative basis I thought this period in GST's history might be of interest. First a few significant differences to note between GST and DCI. 1. GST is listed on the AMEX. 2. GST is carrying a substantial debt load, 200 million + during this time period. 3. GST lost big bucks during this period: An 11 million loss for 1995 and a 60 million loss in 1996 Personally I would think that items #2&3 would more than offset the value added by the AMEX listing if I were evaluating this stock, but make your own call. (G) Here is how the numbers look: GST Year Revs. net loss trading range shares out rev./share 1995 18.7M -11M $3.50-$7.81 18.7M $1/share 1996 41.3 -60M $5.75-$15.875 22M $1.88/share In my earlier note, I showed that with Edge added, our 12 month numbers should give us about $1.27/share in revenues based on 19.5 million shares outstanding for comparison. Of course we are not a listed company as of yet, but also do not have any significant debt nor losses to report. On another front, I came across another small company called Hitcom that is in the prepaid phone card business. I only have partial info on this company, as it is non-reporting and of course not listed. I am including this company because it's current share price is very close to our own. HICO Year Revs. Net loss Share price: 1998 3.2M -49K 1.875-2.06 current Hitcom is growing via M/A but at a much slower rate than DCI. The company goal is to reach 50 million in revenues by the year 2000 and to become fully reporting and work towards a listing. I'll try to find some other small telecoms that more closely match DCI as time goes on. Everything I have found so far indicates to me that our stock is currently way undervalued. It will be interesting to me to see if now that the CC selling has stopped if the market moves us up towards more reasonable levels with time. James