To: Ronaldo who wrote (36027 ) 1/14/1999 11:53:00 AM From: Sam Lee Read Replies (3) | Respond to of 50264
Thanks Ron. That is an excellent post. THE CHIN MAN STRIKES BACK--------- It is time to analyze. I am not going to spend all day on this computer ,but for those who have inquired, here is my best read: (1) Jimmy's immediate financial problems are resolved. He has the money and the contracts to get operational. (2) What will DGIV make selling 1-5 million minutes a month to a broker? I don't know but I assume that DGIV and Teltek share the spread and so let me guess at least 1 cent per minute. If I am right then that is $10,000-$50,000 per month for wholesaling minutes. There can't be much over head in that once DGIV cuts a deal with a broker. (2) The announcement today indicates that DGIV will also be a carrier. That means that DGIV not only sells the minutes to a broker but the calls will then be routed over the DGIV network. I don't know what DGIV will get but my ld carrier,Quest, charges me 10 cents a minute.I don't know whether all of that goes to the carrier or it is shared. If DGIV does as well then at 50 million minutes per month that works out to $500,000 per month in gross revenues. (3) Don't forget that DGIV also has a deal with MNSS to provide control panels for servers. I don't know the profit margin, but DGIV will also make money selling or leasing servers to overseas customers/companies. Conclusion: Jimmy and DGIV are out of the woods. They have not yet reached the top of the mountain but the direction is clear. We are in an age of consolidation, and IMHO at some point this company will be bought out. Stockholders won't have to worry about when to sell. They will be purchased. Finally, this stock has run up on low volume. That tells me that the float is very thin. Somebody has quietly bought up the float and is holding it. Relax and enjoy it. The tide has turned.