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Microcap & Penny Stocks : DIGITCOM (DGIV-OTC-bb)Information Thread -- Ignore unavailable to you. Want to Upgrade?

To: E'Lane who wrote (394)	1/2/1999 9:43:00 AM
From: Lazarus Long	Read Replies (1) \| Respond to of 530

DGIV Visit - 12/28, part 4 Disclaimer: this particular report is the last of what I have. For some reason, there seems to be a lot more of “me” in this report than in the past. I feel reasonably comfortable though that the reader can pick out those things that are from me versus those that are from Mr. Chin. I also feel fairly comfortable that fact is reasonably distinguished from rumor and / or conjecture in this post. So, without further ado... I wanted to briefly discuss Louis International (LITE) with Mr. Chin since the last I had heard from Cheryl Mitchell was that though there no deal currently, there were still some form of negotiation going on. I had also heard other rumors that ranged from any deal was dead to one being imminent. As I understand it, the talks with LITE have revolved primarily about callback cards. Mr. Chin indicated that Digitcom was very interested in maintaining the relationship with LITE active. He explained that the loss of the original deal came about because of a significant drop in price for long distance by some of the competition. Seems that if the deal had gone through, at least Digitcom (and perhaps the others) would have been placed in a loss position. So, it sounds as if the timing of the events was such that we were fortunate that DGIV was able to pull back when they did. There were suggestions that there were some form of ongoing talks with LITE. Mr. Chin indicated that he was interested in keeping that relationship afloat if for no other reason than the contacts that come with the relationship. We have heard that LITE is comprised mainly of formerly eastern bloc countries - countries that require significant help with their infrastructure, including telecommunications. Contacts to those countries seems like a good thing to have. IMO, Germany is every bit as important to Digitcom as Egypt. Egypt has the distinction (we believe) of being the first contract, but the whole German experience has significant money tied to it. Both situations have the potential to expand into networks for their respective regions - well above and beyond the immediate deal being worked. Since the reunification of Germany, there has been tremendous effort to build the infrastructure of formerly East Germany in order to bring it to the same economic health as that of its western counterpart. The German government has poured a lot of money into this effort and the company for which I work has been the recipient of incredible incentives to locate a manufacturing plant in the east. Mr. Chin also mentioned something about the Marshall Plan... I am only familiar with the phrase - not the meaning (shame on me!). Mr. Chin indicated that this was money somehow tied to the rehabilitation of the region (from World War II?) and has only recently become available. Up until then it has been untouched and earning compound interest... so it is a significant sum. This is also being spent on building infrastructure. So, the money is there! It is now DGIV's job to go get it and things are moving to this end. My Note: I have tremendous hope in the possibilities for this area. Eastern Germany has always had a leadership role in the eastern block companies. They are in an enviable position now in that part of the world. There is a tremendous will on their part to prove themselves as good as their western cousins, there is a will on the part of their western cousins to help make that a reality and there are the resources to be thrown at the problem. Put all that together with the stereotypical German “can do” attitude and “work ethic” (the stereotype is real, alive and well... based on personal experience in working recently with some Germans from the east) and I believe that there is an economic explosion waiting to happen in that part of the world. Digitcom positioning itself to ride the swell can only be a good thing, IMO. A couple of months ago, there seemed to be a bit of a cash crunch going on within Digitcom... just as suddenly as we heard about it, it seemed to disappear. When asked about it, all Mr. Chin would do was smile and indicate that not all financing has to be done in the United States.... that was as far as I got with that question. Once again, he seemed very comfortable with the topic and indicated that there was no immediate problem. Mr. Chin also spent some time with me explaining the current business climate in which Digitcom is trying to establish itself. He described it as very tough... a situation where everyone seemed to be aligned with someone else, but always keeping an eye out for better opportunities and always being very, very careful. He used an analogy of the “marriage of convenience,” which I found very amusing and apt. Well, that's about the last of it for my report. If there are specific questions, I will try to answer them. But as you can tell, we covered a wide variety of topics and none of them in all that much depth. Lazarus