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

To: James Harold Alton who wrote (15960)	5/3/1999 12:09:00 PM
From: Art Vandelay	Read Replies (1) \| Respond to of 19331

Do you understand the incenitives that a company has for using a pooling of interest when making an acquisition? Does this allow the companies involved in the acquisition to combine or "pool" earnings/revenues instead of the newly acquired company only contributing after the acquisition? I think this is correct James. My feeling (other than the nausea) is that this is an accounting issue, which while important will not affect the ongoing business of DCI, especially the long distance piece of the puzzle. AV

To: James Harold Alton who wrote (15960)	5/3/1999 12:11:00 PM
From: Ken Salaets	Read Replies (1) \| Respond to of 19331

The question is, why a suspension of trading? And ITEL too? Might the latter be a protective measure to keep ITEL stock from being trashed by the market manipulators during the holding pattern? Or however long it takes. I wouldn't be that surprised to see SEC approval of the merger come out of the other end of this process, and I am not normally an optimist by nature. ggg. Ken

To: James Harold Alton who wrote (15960)	5/3/1999 12:28:00 PM
From: Grantcw	Read Replies (2) \| Respond to of 19331

Hello James, I think you got my brain jogged, James. I may have been wrong earlier as I was not thinking of historical data. I'm going to have to go find an accounting book, but I believe that in a pooling, the companies are treated as if they've always been together. So, upon completing a pooling acquisition, the financial statements are combined for the companies for every prior year of their existence. Therefore, past revenues would be higher because the acquired companies revenues are tacked on for prior years. In a purchase, I don't think you get to restate all past periods. You may get to tack the revenues on for the year of the acquisition, but not for all past years like a pooling. I'm getting a bit over my head on the specifics now. Haven't really seen too much pooling vs. purchase accounting data at work. I'll dig out my text books over the next few days and figure things out, hopefully. Grant