To: Little Engine who wrote (33762 ) 12/12/1998 11:54:00 AM From: Lazarus Long Read Replies (2) | Respond to of 50264
Good Morning Little Engine...I'm sorry, I just can't buy into the "announce all the contracts at once" deal. Fair enough.Releasing financials would help them more than contracts. I'm sure even potential customers want to be sure that DGIV will be around in a few years, especially since this is a new area of business for DGIV. Actually, I don't believe that releasing the financials will help DGIV at all... not now, at least. Without the addition of revenue from a contract that is en force, revenues are probably not substantially different from what they were last year. That is not a number that would inspire confidence... IMO. At least, not when compared to the size deals they are now trying to put together. Now that might be interpreted as me saying that not releasing financials indicates they have something to hide... Not true. However, I do not believe that DGIV's financial condition could be considered one of their strengths at this time. So why advertise your weakness? Its not going to help you achieve your goals. That is why, IMO, we saw DGIV back off from releasing both the financials and the 10-SB.Again, on the Germany release... what the heck would "preliminary approval" be? I also don't see anything about DGIV getting any financing, or even being eligible for it. It said the financing would go toward "fixed asset investment", which doesn't sound like DGIV's business to me. Preliminary approval, in my modest experience can mean anything from a very informal, "yeah, OK sure," to something just shy of granting approval. I don't know in this case. Perhaps DGIV needs to provide a specific business plan for the use of the money, or provide specific corporate records or maybe some "earnest money," or some combination or something completely different. It is encouraging to me that they have employed an expert (Jane's friend Lietzmann <ggg>) to help guide them through the process. I am confused by your statement, "I also don't see anything about DGIV getting any financing"... The opening line of the PR stated that they had prelim approval for the financing. If you are saying that they haven't actually received it yet... I agree. In fact, my guess is that they haven't been approved yet either. Although, I do expect it to be resolved soon... one way or the other. Under current attitudes about corporate communications, I am not surprised that they would stay silent on the topic of meeting any eligibility requirements. As to the money's use... this is the "tricky" part of the Germany PR, IMO. The statement reads...The funding being made available will be in the form of grants by the government forfixed asset investment, and as low interest loans, according to Lietzmann. That could mean that grants would be used for fixed assets and low interest loans may be used in other ways. That's how I read that statement... been wrong before, though. The PR also does not break down the percentage in grants versus low interest loans - too bad. Maybe that has yet to be determined. As far as Digitcom being able to use money designated for fixed assets. At least in the U.S., fixed assets can be anything from plant and equipment to office furniture and computers. The business that DGIV is engaged in certainly uses equipment... the servers are not cheap and could chew up quite a chunk of money in a hurry if they were to be purchased through use of the grant money. Furthermore, I would not rule out the (IMO, remote) possibility that part of the plan may be for DGIV to end up in control of some actual copper wire... Digitcom Long Distance (DLD) Corp. is still lurking in the background there somewhere...As usual, very clever wording would lead one to believe that DGIV would be getting money from this source -- in this case the Brandenburg government. At the risk of sounding REALLY IGNORANT... that is certainly my interpretation - at least that the Brandenburg government would in some way be involved in helping with the financing. I'm not aware of too many financial institutions in the habit of making grants. Do you know anything different? In conclusion, I've got to say that I have been enjoying the exchange. Lazarus