Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Little Engine who wrote (30043)	10/24/1998 1:16:00 PM
From: kennbill	Read Replies (3) \| Respond to of 50264

Little Engine, your simple mind is confused again...You wrote: Additionally, it says the money would go to "fixed asset investment"... which to me means things like buying cables, computers, etc. for the network. Does DGIV make any of those? ________________________________________________ When General Motors invests a billion dollars into Fixed Assets (Manufacturing Facilities) those idle facilities don't make any money or add to their bottom line... it does so to make cars, which make $$ This investment by the German Government will be the infrastructure to allow DGIV to operate and generate $$ ... Why do you persist?

To: Little Engine who wrote (30043)	10/24/1998 4:06:00 PM
From: Lazarus Long	Read Replies (1) \| Respond to of 50264

Little Engine... You are right... the announcement indicated that only a preliminary approval has been granted. However, that notice came out in June... it would seem that we would know one way or the other fairly soon. I also see that the PR indicates that the $25M will be in the form of grants and low interest loans. A couple of things strike me about that. One is that I doubt that the money preliminarily approved is in dollars... it makes more sense to me that it would be in deutsche marks. Does anybody know how the dollar has changed against the deutsche mark since June? I don't... just wondering... The other thing is that grant money will be made available for fixed assets. Now Digitcom may not make any of the gateways that will be used, but it will need them all the same... the money could also be used to buy land, buildings, office furnishings, as well as cable, etc. I don't know what the split in the money will be, but it seems that this money is earmarked to stay within the country of Germany. Nevertheless, it will still fall to the balance sheet as it is purchased,; thereby, strengthening Digitcom. Low interest loans is a phrase that I take to mean loans that bear interest rates lower than market. It may be presumptuous to assume that this money can be used in any means desired, but it does seem reasonable to assume it can be used for operations... salaries and other expenses. This is money that can be used to operate the business. Since we don't know what Digitcom's revenues are, operating capital is a big question mark. If this money can be secured, it is bound to make life a little easier for the Digitcom executives. Now a question... is it reasonable to assume that the German government would make the loans if they did not feel that there was at least some chance that DGIV's operations in Germany would be sufficient to pay the money back over time? Or that Digitcom would even last long enough to pay the money back? I don't know the answer... just thought I would throw that out for pondering's sake. Lazarus, going for a baker's dozen :-)