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

To: Ken Salaets who wrote (14548)	3/5/1999 10:23:00 AM
From: DENNIS TULLY	Read Replies (2) \| Respond to of 19331

Found this on another thread: silly rumor: IXC Communications May Be Sold Within Weeks, Business Week Says Bloomberg News March 4, 1999, 7:46 p.m. PT Austin, Texas, March 4 (Bloomberg) -- IXC Communications Corp., which provides phone services to small- and medium-sized businesses, may be sold within weeks for about $41.9 billion, Business Week reported in its ''Up Front'' column, citing an unidentified person close to the company. Britain's Cable & Wireless Plc, Internet service provider PSINet Inc. and Global Crossing Ltd., which builds undersea fiber-optic networks, are considered the most likely buyers. The offer price would equal about $53 a share, lower than today's closing of 54, the magazine said. IXC said last month that it was considering selling the company as one way of boosting its stock price. (BW 3/15 6 www.businessweek.com) --Courtney Schlisserman in the New York newsroom (212) 318-2300 --------------------------------------------- NOTE: yahoo shows IIXC's market cap as $1.95B, so the price above is totally wrong. I don't think Global Crossing is going to buy this company. Next

To: Ken Salaets who wrote (14548)	3/5/1999 10:39:00 AM
From: Grupo Brad	Respond to of 19331

Good Morning Everyone, I just received this update from Kathy-Knight McConnell (Investor To Investor) with an update after talking to Joe Murphy. "Grupo Brad" p.s. KEN---Looks like Joe's lawyers took care of 1 sentence. <gg> Subject: 3/5/99 update on DCTC - Investor to Investor Date: Fri, 5 Mar 1999 09:29:49 EST From: KKnightmcc@aol.com To: KKnightmcc@aol.com Dear Investor to Investor readers: I spoke to Joe Murphy briefly yesterday in regard to the financing and the stock swap with Wavetech. On the financing, Joe was very upbeat about the first tranche on the switches. He said they have pretty much selected the leasor and that it had come down to the wording on one sentence in the contract. He also said that they charges on the financing don't go into effect until the switches are in place and the minutes have begun to flow through them. On the working capital part of the financing he said that he had turned down quite a few offers because they were convertible debt and he didn't want to dilute the stock of the shareholders. Of course he and his family are also shareholders, so what is good for them is good for us. I applaud his resolve in that situation. Joe said that he still had other offers to consider, but wasn't worried about the working capital situation. Which brings us to one of the reasons for the stock swap with Wavetech. The $2 million dollars cash which can be used for working capital if needed. There are a lot reasons why the Wavetech stock swap took place. One of the most important, besides the available cash, is that Joe wanted to proclaim to the world his serious intent to merge with Wavetech in order to head off any hostile takeover situation that could arise. He said that there wasn't any that he knows of but it was a good move on his part. In my opinion it also signals to the SEC that both companies are serious about the merger. Perhaps it will speed up the process. Now that DCI has almost a 20% stake in Wavetech, Joe is taking steps to move some of his people in to start working on the merger and put other strategic plans into play. Part of the problem that Wavetech has had was in the amount of the rates they have had to charge their customers to make a profit. Wavetech has been charging an average of .23 per minute which is not very cost competitive in today's market. DCI can provide minutes to Wavetech at .02 per minute which would allow Wavetech to reduce their rates dramatically and increase margins dramatically, which is why DCI's press release said it would "jump start" the operation and distribution of Wavetech's existing and new products. Our call was interrupted by the arrival of representatives from Ernst & Young who were there to talk with Joe about them taking over as the accountants for DCI. That is a very good indication of how far this company has come. Ernst & Young is a very prestigious accounting firm. If they take on DCI as a client that will be a coup for DCI and through them Wavetech. I also noted that the following story was released on the stock swap by REUTERS: DCI <DCTC.OB> swaps stock with Wavetech <<A HREF="aol://4785:ITEL">ITEL.O</A>> STRATFORD, Conn., March 2 (Reuters) - Global telecommunications provider DCI Telecommunications Inc. said Tuesday it will swap 576,047 shares of its common stock for 568,846 common shares of telecommunications firm Wavetech International Inc., in preparation for an upcoming merger. Completion of the merger depends upon approval from stockholders and Nasdaq Stock Market officials. The companies said they are working on several joint projects, particularly in the operation and distribution of Wavetech's products. DCI will also begin operating as a competitive local exchange carrier throughout Spain as a result of an agreement with Spain's national cable provider, Retevision. Under terms of that deal, DCI will become an alternative local carrier to Telefonica de Espana. Retevision's wireless network has been modified to allow DCI to transmit its telecommunications services. Shares of Wavetech were trading up at 2-5/8, up from the 52-week low of 7/8, but off a high of 10-5/8. DCI recently reported sales of $28.1 million for the nine months ended December 31, 1998 compared to $8 million in the prior year period. DCI shares were trading at 2-15/32, down from a 52-week high of 4-5/16, and up from a low of about 21/32. 18:53 03-02-99 Copyright 1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. All active hyperlinks have been inserted by AOL. This is good too, since we are getting further coverage from REUTERS picking up the story. Have a good day, Kathy Knight-McConnell Investor to Investor investortoinvestor.com Disclaimer: Knight-McConnell Information Retrieval Service and Investor to Investor Newsletter is not nor does it claim to be a licensed stock broker, analyst or financial advisor. This service and newsletter has been set up strictly to provide research information. All research information is obtained from sources believed to be reliable. I and my research helpers take no responsibility for decisions made by individual investors based upon information provided. All research is provided for informational purposes only. 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Investor to Investor is a subscription based newsletter. All subscription fees are nominal and cover the costs of research and time spent compiling information on publicly traded companies. The first issue is always free to new subscribers. NOTE: I have not been paid in any way, shape or form to write about DCTC.