Data Communications Management Corp T.DCM

RE:Dividends, Cash Flow, Debt

[philr]

Sorry I dont agree with several statements you made.

1. Debentures dont have to be redeemed for shares, they can issue new debentures
2. By reducing costs by $1million a month starting Jan 2014 they have enough cash flow to pay the existing dividend as it is, and pay down debt
3. Who says the market/investors dont believe the present dividend is sustainable. If that was the case you would see a mass exodus when in fact only 4% of the stock has been traded since the last financials were issued. That means most people are hanging on to their stocks.
4. The fact that there may be more restructuring charges isnt necessarily a bad thing at all, if you pay out a lease, it  reduces monthly costs. Given the fact that the legacy print business is shrinking it's pretty obvious they will eventually need less space.

Unfortunately too much emphasis is placed on gross revenue growth, as Data Group  seems to have negative growth most reporting periods, the stock gets punished.

I agree Data Group should be a little more forthcoming with information regarding future plans. One can only hope the Board of Directors can do something to encourage proactive rather than reactive management from here on. Statements like "dramatic cost reduction" and "aggressively reducing debt" sounds great, but it doesn't take a Philadelphia lawyer to stop leasing buildings that aren't needed or to reduce a dividend and use that to pay off debt. Anyone running a popsicle stand can do that. So just what are the CEO and 7 VP's doing?

Data Group's motto is "we do what we say we will do". It's a great saying but it sure isn't improving the bottom line as far as I can see. It's time for some RESULTS