To: Little Engine who wrote (33677 ) 12/11/1998 5:29:00 PM From: Lazarus Long Read Replies (2) | Respond to of 50264
Thank you for your comments, LE... I believe that essentially we are in agreement about the Louis International situation back in March of this year.It is typical of DGIV to write incredibly deceptive press releases like the Louis Int'l one and the "German telephony network" one, which on close review shows no mention of DGIV getting any money or business there. To some extent, I have to agree that some intentional deception was at work here. It was very disappointing to me to find that Digitcom's management had feet made of clay. What I mean by this is that the management seemed to have courted a "close relationship" with the SI investors via informal channels of communication and the more formal newsletters which were published. The aura of the relationship was such that I expected that bad news could also be addressed. Thus, I would have expected a PR from the company stating that negotiations with LI had been broken off or that DGIV had tabled their offer for the Indonesian Telco. I believe the company let their ambition to go to Nasdaq (at the time all this was happening) override their sense of what was right. As to the Germany PR... I do not find this to be deceptive. How I read this is that preliminary approval had been granted for DGIV to get some gov't. financing and that it would be used to establish an IP network in the Potsdam region. I read that as the first step of many that must be taken to get to the ultimate goal. BTW, I suspect that we haven't read any more on this subject from DGIV because nothing of major import has happened on this front... yet. It is; however, my understanding that a time line is involved... Mark... have a Beck's - on me.Secondly, on the issue of DGIV having signed any contracts -- honestly, unless they signed one ten minutes ago, I think I'm on incredibly safe ground. Yup :-) I got carried away in trying to make a point. The point is that we do not know the exact status of Digitcom now (good or bad) and we can only guess at their immediate future. Seems that we have very differing opinions on what that future may hold for them.I cannot believe that a company which would announce unsigned contracts -- and MOU's -- would forget about announcing signed ones. Not only would it help DGIV's stock price (which it needs to rise if it truly wants to be listed one day), but they could parlay that first contract, I hope, into a few more by showing other companies that they are serious. Let me state before going any further... I do not for an instant believe that they currently have an unannounced contract in their possession. But, but, but... I could believe that they would hold such a valuable piece of info close to their vest. Let me play a scenario out for you... the big "IF" or "COULD BE" Suppose they had a nice contract in their hot little hands... one that wasn't a blockbuster, but was going to generate some nice revenues for a company their size. Though they don't announce that contract, they certainly could parade it around to the various governments they are working with in order to parlay it into something more. If they had announced the original contract and each contract subsequent individually, the price would likely spike with the increased buying pressure and then eventually subside to some new base. That base is, IMO, not purely supply / demand driven. We are talking BB hell here. Who really knows what would happen. I understand that DGIV management believes that manipulation of their stock is rampant. Now, if they were able to hold onto those contracts and release them in quicker succession... with a timing designed to drive (and keep) share price above the minimum that would allow them to meet minimum Nasdaq requirements. Perhaps instead, the idea would be to keep the price at a level for a long enough period of time to convince another (Nasdaq) company to swap DGIV shares for their own. I don't know... all the above is pure conjecture. But, it doesn't seem all that far fetched to me. Remember, Digitcom can afford to let the share price drift until it actually needs to do something with its shares... like raise cash or swap them for some other asset or service. Lazarus BTW... it is my understanding that DGIV holds several more MOU's than those announced. It is also my understanding that they have not been announced because of the desire expressed by SI share holders that we didn't want to see anything that wasn't a "done" deal. This may also explain, in part, the last couple of months of silence.