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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?

To: Dolfan who wrote (36360)	1/16/1999 2:33:00 PM
From: bullmarket	Respond to of 50264

Mark, I think Teltek is a privately-held company. The share price option was an incentive to Teltek to join DGIV as a partner in the Joint Venture deal. My understanding of the situation is: In lieu of cash, Teltek will receive the share option (I don't know when the options can be cashed in, but my assumption is that it is sometimes in the future, as the JV is up and running). This is attractive to DGIV because : 1-DGIV does not have to spend cash, which is necessary to finance other projects for DGIV growth 2-it gives Teltek the incentive to help the Joint Venture grow and prosper since if DGIV share price goes up, Teltek 's profits from the share option would also increase. Given the fact that Teltek has an established presence in many other Aisan countries, it is very likely Teltek can do things to help the Joint Venture between DGIV and Teltek prosper, IMO. Conversely, the share price option must be attractive to Teltek since they must feel they can make a lot of money from it. Why didn't they demand cash or why didn't they deal with other IP telephony companies instead of DGIV? They must have gone through DGIV business plan as its partner and must have felt they can do very well with an option price of 1.5 I agree the "perception" of a correction leaves a bad taste in everyone's mouth. However, the good thing about the correction is that it gives us all a chance to see the details of the deal and to see how it would benefit DGIV. It also is good to see Teltek agreeing to an option price of 1.5, which is yesterday's closing price. The bottom line is : in the long run, as far as DGIV fundamentals are concerned, what is IN the correction is important, not the fact that there was a correction, IMO.