Maybe this is old news I havent read many recent posts...but I just received an e-mail from the SOTM (stock of the month) research team. Its their pick for July...Anyone else seen this? Pretty good summary of the company and recent trading activity.
SOTM Research Team is excited to present its July stock
profile. We expect significant events to occur with this company within the next few months, which, coupled with its growing market and solid management team will lead to explosive growth in equity ownership. This company has already experienced over a 700% increase in stock price, and has so much farther to go!
Digitcom Interactive Video Network, DGIV, is strategically
positioning itself as a player in the lucrative Internet Protocol telephony market, known as IP telephony. This market is anticipated to grow at a staggering 149% annually compounded rate, and is one of the fastest growing markets, second only to the Internet. The IP telephony market uses the Internet Protocol as the methodology for communication of telephone services. The key benefit to this is that IP technology packages and segments information differently than the existing method. This existing network is known as the Public Switched Telephone Network, or PSTN, and it requires dedicated circuits which need to remain open for a set of users. In comparison to IP technology, PSTN is extremely inefficient and it is estimated that IP technology will be more efficient in comparison by 2-7 times that of PSTN. Within the next few years IP telephony is anticipated to account for roughly 10% of all calls. The telecommunications industry is currently a $670 billion industry.
In the past, attempts have been made to use IP technology
in the telecommunications industry; however due to technological limitations the quality suffered significantly. DGIV has developed the InterVoice Gateway Server, which is the device that utilizes the IP technology to package the voice data, send it over the infrastructure, and unpack at the other end. DGIV possesses the technology that can effectively use IP telephony, with enhanced quality far surpassing previous attempts. This technology is owned by DGIV and it is estimated that by the year 2002, the industry will have IP telephony equipment sales topping $3 billion, with over 95% of these sales being gateway servers.
It is apparent that DGIV is entering an industry that
will experience astonishing growth both from a hardware and service point of view. DGIV revenues can present
themselves in two forms: providing an inexpensive transmission service by increasing capacity, and by selling the systems that make this possible. The potential of this market has been recognized and we have seen entrants into this market like 3COM, Cisco, and Lucent. At the same time Wall Street's attention has been turned and Investment Capital has become abundant.
Digitcom is aggressively engaged in contract agreements
to hedge against the potential threat of these large players. By signing agreements early on DGIV can ensure their position in the market or present themselves as a very attractive acquisition for large players willing to pay a premium.
Currently management is very focused on their objectives
and, as announced in company press releases, they are aggressively implementing this technology worldwide. Key company executives are signing deals within different countries weekly and have even obtained contracts with political forces, such as their amazing deal with Germany. Many of these contracts are yet to be formally released to the public. Their marketing and sales effort is aggressively attacking the global market and is flexing its international presence to establish a network that is placing DGIV as the fastest growing company in this segment. During this aggressive stage, management has focused on the primary goal of protecting and increasing shareholder value. They continually seek to acquire companies where strategic acquisitions present themselves in attempts to dominate this unique market.
After implications of an alleged insider "short sale" of
DGIV stock, management proposed a 1.5 million share stock buyback plan, and has already purchased back shares in accordance with this plan. This is just another sign of management's intentions of putting shareholder
priorities first, and insuring investor capital preservation. Atypical of a company that is growing so fiercely, DGIV presented net income of $290 thousand for fiscal year ending December 1997, or $.02 a share. The company is also moving forward to become listed as a NASDAQ Small Cap security rather than an OTC Bulletin Board Stock. We see all of these steps as evidence that management holds their positions very responsibly with shareholder interest as a primary focus.
Digitcom's stock price has slumped recently, and has fallen
below the price requirement to be listed as a NASDAQ Small Cap. We believe the current price is not an adequate representation of the company's valuation or future growth potential. We see DGIV as being the key player in a young and fiercely growing market. Management has clearly defined goals and is executing decisions that are insuring company success. We see Digitcom's rode to be bumpy. We anticipate that this security can experience daily moves of 5 - 15% in either direction, however, the long and short term movement is promising being extremely positive. Stock price has been experiencing significant selling pressure while daily buying volume has more than double selling volume, meaning strong stock accumulation. Buy sell variance of this type typically signifies that Market Makers are "going short on a stock" or selling more shares than they have in attempts to purchase shares to cover their deficiency at lower prices. We believe that theseMoney Makers will be forced to buy shares (cover) as DGIV price increases. We believe that once DGIV achieves the listing as a NASDAQ Small Cap, DGIV will gain the attention of a new realm of investors giving it even more potential to soar.
SUMMARY: DGIV owns a technology that essentially makes telephones talk over the Internet like computers do. This technology increases the capacity for handling calls, and is much cheaper. This is a very big industry that makes $670 billion annually, and analysts estimatethat this technology will be able to steal approximately 10% of this industry or roughly $67 billion. Beside being a part of this $67 billion industry, DGIV will also be able to sell its equipment with this technology in the future. Industry specialists say that
in the year 2002 there will be $3 billion dollars worth of this equipment sold. DGIV is currently implementing these servers around the world while they build this network that will rival PSTN. Excellent market, excellent product, excellent management, and currently an undervalued stock.
OTC:BB DGIV
Price: 2.75
Shares Outstanding: 18,122,547
Float: 6,833,041
Digitcom
2190 B Colorado Avenue
Santa Monica, CA 90404
310-584-0750
For more sources of information:
digitcom.com
info@digitcom.com
Subject 20367 WorldVision Financial at (888)345-6060
Investment in securities of relatively small and young companies possesses significant risk. Only invest capital that can be lost. Every investor works for the same goal, which is to make educated decisions that will financially benefit you in the future. Please be responsible and only invest capital that can be exposed to risk.
Thank you,
SOTM Staff
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Stock Of The Month
sotm.com
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****************************************************** SOTM is an independent newsletter, which provides readers with financial research of publicly held companies. All analysis, statements, and expressions are the opinion and belief of SOTM and are not an offer or solicitation to buy or sell any securities mentioned. Investing in securities is speculative and carries a significant amount of risk.
The companies that SOTM selects are done so with the belief that they possess the ability for sustained financial growth, in which investment in these selected companies would provide investors significant financial gains, while limiting the risk exposure. SOTM, SOTM Research Team, and/or SOTM family members may at times hold positions in selected companies. All analysis, statements, and expressions made by SOTM are obtained from materials supplied by selected companies, public sources, and/or interviews conducted by SOTM. It is the belief of SOTM that all sources of information are factual and reliable, however, we in no way represent or guarantee the reliability of such information. SOTM, SOTM Research Team, and/or SOTM family members or affiliates have received no compensation for the analysis or dissemination of this information. We are in way affiliated with Digitcom Corporation or any of its affiliates. ****************************************************** |
