To: charles catlett who wrote (9369 ) 10/16/1998 4:14:00 PM From: James Harold Alton Read Replies (1) | Respond to of 19331
Charles, ".In total, what are the estimated revenues for this FY and projected for next? Also, even at a conservative 1.5 what would the potential sell price be? I know someone did this a while back (my apologies) but the revenues have been growing so fast, it has changed." It sure is nice that these revenues keep changing, seeing how they have done nothing but get larger since I have been with DCI. (G) The stated selling multiple is 2-3X revenues by the way. It is my opinion that DCI's value would be higher than just FY revenues because the rapid increase in revenues would IMO cause a gross understatement when taken over current FY. We know that we did 6.3 million for the 1rstQ, and I am looking for 10-12 million for the current quarter, the 3rdQ could be considerably more and the 4th? Since I am expecting to see increasing numbers for subsequent quarters, and you seem to be looking for a conservative number, I think that we can safely guess at least 60-80 million for this FY. Our current outstanding is about 21.5 million + all remaining options and making no allowance for the series F which I am confident will never be converted into common, is about 24.5 million shares, so: Conservative revenue estimates: 60 - 80 million for this FY: On 60 Million $ at 1.5X revenues = $3.67/share at 2X revenues = $4.90/share at 3X revenues = $7.35/share On 80 million $ at 1.5X revenues = 4.90/share at 2X revenues= $6.53/share at 3x revenues= $9.80/share I think that all of these numbers understate the true value of the company, since it's my opinion that the value would probably be calculated on the then current run rate + some additional revenues based on signed contracts being ramped up. I also have the feeling that Cyberfax is worth considerably more than the revenues generated by that division would indicate.. Our current stock price puts us at a revenue multiple of .2 based on an 80 million $ FY by the way. I have never owned a stock this undervalued before... The shorties might have been just treating us like any other OTC BB stock with an ugly chart and have overlooked our strong fundamentals. Sooner or later those fundamentals should start to be realized in our stock price, and when that happens, the shorties should get a quite rapid education IMO. (G) We will see.. James