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

To: Eric G. Erpenbeck who wrote (7730)	8/11/1998 11:07:00 PM
From: JOE MEDSKER	Respond to of 19331

EGE, <<<<Maybe I concentrate too much on earnings and profits but to me this is what business is really all about, not SALES!!!>>>> From everything I have read or witnessed (WCOM,SMTK and other stocks) valuations in the Telecom business are based on revenues. I guess the thinking by the top level management in these companies is generate all the revenues you can and the profits will follow. As far as DCI goes, at the rate they are spending money on infrastructure to handle their existing and potential future contracts I don't think they would show any meaningful EPS for at least another year. Joe is absolutely convinced he can sell the company for between 2-3 times revenues by year end and until he receives a definitive agreement on an acceptable buy out price he will continue to expand at full speed, expansion costs be damned. IMO I don't believe he is looking for any more acquisitions. I think his feeling at this time is to close LOCUS and the TWC joint venture and be able to present a Telecom Co. to potential suitors that does not resemble a company full of people who look like chickens running around the office with their heads cut off. None of us particularly liked the convertibles but a couple of tremendous opportunities were dumped in his lap and the CP's were probably his best option. At this juncture another CP issued to finance the needed new equipment would not be bad as long as it contains some protection for existing shareholders. Eric, as I have said before, the only thing wrong with DCI is the stock price. Once the over hang is gone, God willing, we will all be happy with one another again. The CP's will be a thing of the past and all will be right in our lives. I will agree with you on this, if for some reason the company is not sold in the near future and the pace of acquisitions slows considerably then earnings will be the name of the game. Best Regards