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

To: ernie de la fuente who wrote (6707)	7/11/1998 3:00:00 PM
From: Parker Benchley	Respond to of 19331

Ernie, I second your thought! Onward, George

To: ernie de la fuente who wrote (6707)	7/12/1998 4:40:00 PM
From: James Harold Alton	Read Replies (2) \| Respond to of 19331

EDLF, Hi Ernie, I was just pondering our valuation at this point in time and thought I would toss out a few numbers as food for thought. In doing so, I will try to use numbers that to the best of my knowledge reflect our current conditions. ( I will leave out Locus and use somewhat conservative numbers for Edge) First, we have been told to expect that we will be sold for 2.5 - 3X revenues. This range appears to be reasonable from some other deals I have looked at and considering we actually did about 5X on the SMTK deal could even be conservative. To be even more conservative I will for these examples use 2X-3X revenues. Currently our revenues are from what I have gathered, somewhere between 40-45 million. (some people have suggested higher numbers because of Edge's growth, but I'll use these) My most recent (a few weeks ago) numbers from the transfer agent show us with close to 20 million shares out, so based on the 40-45 million in revenues we have a revenue per share of $2 - 2.25. Now if we apply the 2-3X multiple this gives us a market value of between $4-$6.75. While the focus seems to be on the Locus deal (and yes this is a biggie), I think that what is sometimes overlooked is just how far we have come already and how much unrealized value is built into our shares. Of course these figures are not recognizing any value for either Cyberfax or DCI- UK so the actual market value is even higher. With our share price so depressed, it's reassuring that we can look at even the most conservative scenarios and see some good reasons to hang on to our shares. Hangin, James