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


To: WISDOM MILES who wrote (13139)12/30/1998 1:11:00 PM
From: STEVE SAMEULS  Read Replies (2) | Respond to of 19331
 
Wisdom

shouldn't we use 31mm shares? That changes your calculation to $6.50. I personally would be very pleased with $6.50. I have a hard time believing a company would spend $201.5MM for DCTC (31mm shares X $6.50). There is uncertainty that we can keep the contracts and revenue as this is a competitive business that changes daily. We need to spend capital on switches ect...

The only thing this doesn't account for is the large growth in future revenue. But, I think this is offset by the fact that in the past we have not been profitable and don't have comparable cashflow and book value like the telco industry with the 3.6 multiple. Note, it should just take time for us to prove with the IXC deal that we are now profitable on this revenue. Is there any value we should be assigning to the wavetech merger? Is there synergies? I hope we get the AMEX listing and if we do, what benefits does wavetech bring?