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

To: LT who wrote (13655)	1/23/1999 1:36:00 AM
From: James Harold Alton	Read Replies (1) \| Respond to of 19331

Lou, Yes, I do like to "ponder" as you know. (GG) Thanks for the intelligent "food for thought" that you posted. 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. While every deal/plan that Murphy laid out for DCI has not worked out, enough things have, that DCI has had a rather incredible growth rate, especially over the past year. There are plenty of companies out there with great sounding plans, the only problem is that very few seem to actually seem to make it into their 10-Q's and K's as they have with DCI. It's rather a shame IMO that so much focus has been on the sale of the company and meeting rather tall projections that this very substantial progress has been overlooked by many... This company is making some serious progress that can be verified in SEC filings.. 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>. We are definitely on the same page on this one. The financing issues should be much easier to deal with once the company is listed, so I for one would favor seeking short term financing to get the first wave of switches installed with the intentions of replacing that with a more permanet form of financing once we are listed. 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. It seems to me that since Wavetech is already listed and we are basically being aquired by them, that there should not be any reason for Wavetech to lose their listing after the merger. ITELD was on probation in that they had to have their share price above $1 by the beginning of Feb. I believe it was to remain listed, obviously that is not an 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. My impression is that DCI will be sold as soon as a buyer makes a fair offer for the company. The definition of a "fair offer" will IMO be changing continuously as things progress with DCI as they should. As to the timing, I don't see how any dates/projections can be applied as there are just too many variables. Attempts to set dates/targets tend to set us up for disappointments. The issues I prefer to instead focus on, are whether or not the company is continuing to make progress towards it's original goal over time and if this is the case, then it makes sense to me that eventual success is likely. Obviously a fair offer for DCI could come at anytime and without warning, but as to when this actually happens is not under DCI's control.. While building the company to be sold has been the original game plan, I believe that there is a lot more potential for us as shareholders if things play out longer. 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. I don't really feel that I know enough about the future potential of Cyberfax to make a judgement here, but if the sale of that division could raise cash needed to put in switches, then I would be interested in learning more about this. 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. I just don't see the series F being a problem for us regardless. For one thing, the groups that handled this series have at least 10 lawsuits against them currently for damaging the stocks of other companies that did similar issues with them. The timing of things and the performance of DCTC in the recent past suggest to me that we might have been damaged by this group as well..if this went to court they might actually owe us money... I have long suspected that this group was shorting us ahead of their conversion and if I am correct then I feel it's likely that they are short millions more shares than they would recieve if the series F was converted. Hence, whether the series F get bought back, are tied up in litigation or even if we just gave them the approx. 1.3 million shares they would get if converted at $2.50 to partially cover with, the series F IMO is a non-issue at this point. James