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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?


To: Grupo Brad who wrote (12955)12/19/1998 10:10:00 AM
From: WISDOM MILES  Read Replies (2) | Respond to of 19331
 
Good Morning,Group.
it is very nice!
An Christmas with Joy. This Quiet Period assures us we will be even
happier after Christmas.

1."It is necessary for the company to adopt this quiet period due to
certain activities being undertaken that relate to ENHANCING SHAREHOLDER VALUE".

if all previous QUIET PERIOD indirectly related to enhancing shareholder value; then THIS QUIET PERID is totally and directly for the purpose of ENHANCING SHAREHOLDER VALUE!

The only activities of this nature I could think is to SELL the whole
company at least the core business.

Since MURPHYS didn't sell 1 share when DCTC around $4 recently, we
have enough reason to believe that MURPHYS think $4 for DCTC is way too cheap and they are determined to get $10 even higher as they projected!

2."This agreement(with IIXC) allows DCI'S telecomunication subsidiaries to increase PROFIT MARGINS on several products by as much as 10-15%."

I don't know if 10-15% means now PROFIT MARGIN at 16.5%x(1+10%/15%)=
18.15% to 18.98% or PROFIT MARGIN at 16.5%+10%/16.5%+15%=26.5% to 31.5%?

if 18.15% to 18.98% is true, then we will have EXTRA PROFIT annually
$100million(1999FISCAL YEAR REVENUE) x (18.15%-16.5%)/$100millionx(18.98%-16.5%)=$1.65milion to $2.48million , in other words, EXTRA $0.07 TO $0.11PER SHARE PROFT .applying TELECOM INDUSTRY average P/E RATIO=26, it will adds EXTRA DCTC value $1.82 to $2.86

if 26.5% to 31.5% is true, then we will have EXTRA PROFIT annually
$100millionx(26.5% -16.5%)/$100millionx(31.5%-16.5%)=$10million to
$15million, in other words, EXTRA $0.45 TO $0.68 per share PROFIT.
Applying TELECOM INDUSTRY average P/E RATIO=26, it will adds EXTRA
DCTC value $11.7 to $17.68

Now we know WHAT IIXC DEAL MEANS FOR DCTC!!!!!!!!!!!!!!

Could anyone verify which profit margin of above (18.15%to18.98% /26.5%to31.5%) is true?

any way, DCTC is too cheap at current price, WE will put our all available cash into it in this QUIET PERIOD.

Stronger than ever. GO DCTC!