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

To: James Harold Alton who wrote (13642)	1/22/1999 11:13:00 PM
From: LT	Read Replies (1) \| Respond to of 19331

Hello James, Since you like to ponder.....allow me to offer up a few thots.... 1. What is the growth rate of the emerging telecom business? In my estimation, it is somewhere between 20 and 30% annually depending on the stage the company is in. In rough numbers, DCI ran 8 mil last fiscal year and has already run somewhere in the neighborhood of triple that without the 4Q numbers which the company estimates could be a triple on last year all by themselves. This growth rate will slow AFTER we become more LD oriented but that is way off in the future. 2. What does DCI need to continue this growth rate? Several things but one of which is financing. Personally, I see the need for 30 to 40 million(not all at once) for the switches and infrastructure needed to produce 4-500 mil in revs for the next FY. Financing of that level isn't available to BB companies so that makes my next ? a large one<G>. 3. What will it take for DCI to become listed? I don't have an answer to that specifically but I do think the ITELD merger could do it. The timeframe for that is TOTALLY UP TO THE SEC as they have to approve all paperwork and investigate the backgrounds of both companies. This process will take as long as they want it to. I personally don't see any holdups but I don't have access to all the info on both companies either. I have talked to both CEO's and they both feel there are no skeletons in either closet that could cause a problem. The i's and t's of the paperwork seem to be the largest obstacle which is why we have SEC attorneys retained to work on this issue. 4. When will DCI be sold for the "BIG BANG?" Who knows? Personally, I'm not in favor of selling the company, at least for the stated minimum. This company has too much going for it right now to be impatient and scream for a sell. I'll settle for allowing the revs to continue to grow. Selling a company is difficult. It's akin to selling a collectible automobile. It takes time and the buyers(if the car is expensive) are few and far between. Lots of lookers and wanters but very few with the resources to make it happen. Those with the resources will kick the tires to death before deciding. That is why I like the way this company is run. They sit still for nobody and are continually running the company like it will be a going concern for years to come. That is what I would like to see happen. 5. What about "Cyberfax?" I hope he sells it to the highest bidder and forgets about spending personnel resources and cash to IPO the thing. I think most of the internet craze is waste and will eventually crash to earth. The companies that ACTUALLY start producing revenues and eps will be the only ones to survive albeit they will be HUGE $$$ makers for those that guess right. I've never been a good guesser so I don't care for the arena, hence my opinion to just sell Cyberfax off and use the $$$ to expand the LD business. 6. What about the TWC contracts? I have talked to the company about this and they have told me that there have been delays in the ramp up. Things in Europe are very different from country to country and there have been delays in the cards. That is all I know on that front. 7. What do we need to grow this company into a more appropriate stock price? IMO, we need several events to happen but they are not going to happen overnight. We need some type of bridge financing so that we can get the switches we need deployed in Europe and NYC. I figure that will take 5 million. We need another 3 mil or so to take out the Series F(which I think may have already been shorted but that is another story). We need the SEC to approve the merger with ITEL. That will grant us a listing. A listing will open up some REAL financing from respectable firms. I figure 40 to 50 million would be realistic to get all the equip we need to reach my earlier rev thots. We need some institutional coverage. Again, this hinges on a listing. When those events have happened, I think our stock price will be much more to our liking. Problems.....tons.....just like every business faces that is getting off the ground. This will take time and there is nothing we can do to change that. Take care and we shall see..... Lou...ps. I do love the focus of the company......