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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?

To: Gary Jacobs who wrote (26988)	9/24/1998 8:08:00 AM
From: MARK BARGER	Read Replies (1) \| Respond to of 50264

I spoke with Bob Dunagan a couple of weeks ago as he was just coming on board. He was talking about the small profit margins associated with the telecomm. industry (.02-.04/min) I mentioned that I was under the impression that these foreign contract had around .20/min proft margins. I, too, had a long talk with Cheryl Mitchell and she said the JC is negotiating all the contracts and she was sure that Bob Dunagan was not up to speed on the figures with these newer contracts. Cheryl read to me specific notes from conversations with JC about huge cost savings that allowed DGIV to split the savings with the joint venture partner. For example, Egypt per minute cost would be reduced from .60/min to .08/min using IP telephony. DGIV is negotiating to get between %30-50 of that figure as their share of the profit. Using IP the telecomss can route 50 times as many calls over the same line, hence the savings. Cheryl told me she had no reason to not believe JC's figures, that he has said all along how lucrative these foreign markets are. Also JC is meeting with potential partners/investors all week away from the Javits Center. I don't know how much if any time he will be on site. DGIV's problem is that it is a 1 man show right now and suffering huge growing pains because of his lack of delegation /training skills. I am very dissapointed, but realized going in that with a small operation like this mistakes will be made. We do need to hear from the company about the 10-sb though. Hopefully we have found a bottom around 1 1/8. Good luck to all Mark