3SOF

Hey Voip, I couln't resist the temptation and I bought at $4.21 before the closing. The filing last week that 3 insiders paid $4.5 per share for 27,000 share made my decision easy. I figured that if insiders are willing to pay more than the market rate, they should know better. Besides, I've bever seen insiders pay more than the market rate. It this uncommon?

Hey, are still in DWCH?

Hey Voip, your DWCH is starting to move up. I am in at $4.05.

Good luck

Hey voip, I've been watching you DWCH for an entry point. Hard stock to figure out. There was a poster at the DWCH that posted something  that makes alot of sense. I Have an order to buy big at $4. Even if it dips a little under $4, DWCH is a real bargain at $4 IMO. Hre is what that guy/gal wrote.

DWCH posted 11c/share on record revenues. Beat analysts by 80% margin.....2.4M float..$1/share  cash cash.....ZERO debt.....will fly to $6+

Also, insiders paid $4.5/sh on Friday..link below....


11/17/05 EARNINGS SUMMARY:


- 4Q 2005 Revenues: $5.7M vs. $5M in 4Q 2004

- 4Q 2005 Net Income: $617K or 11c/share vs. $266K or 5c/share

- Analysts expected revenues of $5.6M and net income of 6c/share

- Cash position: Increased to $4.9M in 4Q 2005 or $1/share from $4.3M in 4Q 2004, a 20% increase.

- Long Term Debt....ZERO

- Float......2.4M shares

- Market cap of $22.5M...

- Undervalued P/S ratio of 1.0. Industry average is over 3.

- Steady revenue growth year after year...quarter after quarter.

- Projected revenue for 2006 of $24M

- Projected net income for 2006 40c - 50c/share

- Undervalued forward P/E of about 10 for a growth company entering new markets

The CC was very upbet. The bottom line: DWCH growth in revenues and profitability will continue into 2006 and beyond at an accelerated pace.

Fair valuation of DWCH is at least $8/share based on conservative ratios of 20 P/E and 2.0 P/S.

The street will realize this soon, and with a float of only 2.4M, DWCH might just be the best buy in the market under $5.

Insiders obviously know that. They made a strong statement in that regard buy converting 27,000 shares at $4.5 on November 19.......or bout 5% premium over the closing price on November 18.

http://www.pinksheets.com/quote/filings.jsp?symbol=DWCH

The change in business model that the company decided to implement in 2004 to grow revenues and eventually the bottom line is finally paying off.

You can easily see below the sequentially stronger results in every quarter of 2005:

4Q 2005: Rev. $5.7M, net income of 11c/share
3Q 2005: Rev. $5.6M, net income of 6c/share
2Q 2005: Rev. $5.1M, net income of 0c/share
1Q 2005: Rev. $5.0M, net LOSS of 3c/share

Revenues for 2005 were $21.5M vs. $19.3M in 2004 and $17.7M in 2003. DWCH is on a path to increase revenues to about $24m in 2006.

DWCH announced late last year that it would implement a new business plan and increase sales and marketing expenses. This resulted in a temporary drop in net income from 19c/share in 2004 to 14c/share in 2005. However, 2006 net income is going to grow exponentially based on what was demonstraded in the last 2 quarters.

DWCH CEO had this to say earlier this year about the growth-oriented business plan:

...."The upfront cost of selling and implementing these projects is absorbed currently, but the recurring revenue stream will be recognized over the period that the service is provided. We believe this model will provide a more predictable stream of future revenue as the customer base expands...."

It is obvious that the company is executing its business plan eaxactly as planned in a focused, and efficient fashion.

Don't forget that 1Q 2006 earnings results will be announced in less than 2 months from now. With the current momentum, the Q/Q revenue and net income comparables will be staggering. Remember that DWCH posted a loss in 1Q 2005 and is expected to post double-digit net income in 1Q 2006.

Notice that DWCH traded a lot higher in the past even though the fundamentals today are stronger than ever. In fact, 4Q 2005 was the strongest quarter since 2000.

http://stockcharts.com/gallery/?DWCH

I believe that with continued successful excecution of its business plan and based on new products in growing markets, DWCH will be trading in the $15 -$20 range within a year.

Here is the 4Q earnings release:

http://biz.yahoo.com/prnews/051117/neth013.html?.v=33

DWCH might very well turn into the CKCM of 2006
 
 
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