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stervc

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stervc

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Sunday, 10/28/2007 2:45:47 PM

Sunday, October 28, 2007 2:45:47 PM

Post# of 17004
DMGS $8.7M Closing Importance…

The Coastline Management Group has thus far completed major projects to be now worth $95,219,000. I will list them later within this post for further verification so one could see that if they want something, they usually will get it.

DMGS is expected to be paid the $8.7 million from the deal with the Coastline Management Group. If one were to research their previous SEC filings or call the company themselves to confirm, it’s obvious that DMGS has very little debt to be attributed towards their Income Statement with a safe $240,000 per year. The Liabilities on the DMGS Balance Sheets needing to be eliminated equates to $4,194,957 with the bulk creating that amount derived from a mortgage liability.

That means that the breakdown of where the $8.7 million is probably somewhere in the area indicated below:

$1,060,000 (To pay out .10 Cash Dividend on OS)
$4,194,957 (Mortgage Payment**Liability)
$240,000 (Average Expenses Paid Annually)
$3,205,043 (Amount remaining to be applied to the Income Statement as Revenues)
**********
$8,700,000

Now, that’s $3,205,043 to be applied as Income within the Income statement as these are moneys “earned” from their product, business, or service provided; ie real estate. This will give DMGS with its OS of 10,567,328 shares, a Fundamental Valuation of what’s indicated below:

$3,205,043 ÷ 10,567,328 (OS) = .303 Earnings Per Share (EPS)

With using a 12 PE Ratio as the multiple for a conservative growth rate, then consider…

12 PE Ratio x .303 = $3.64 per share

While people are waiting to see if the deal is true or not, I think one should do some more due diligence (DD) to see that since this $8.7 million is already filed with the SEC, it’s just a matter of time before the market realizes how undervalued DMGS is. The deal with the Coastline Management Group was filed in a Form 8-K with the SEC on 1 Oct 07 below:
http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=5452237

I think some of the apprehension is due to the fact that nobody really knows who the Coastline Management Group is and that they have already completed $95,219,000 worth of major projects. Heck, personally, I had never heard of them (which means nothing). I have a friend in Florida who said that Coastline is very big and very well known (which means something). I do like their website:
http://www.coastlinemgmt.com/index.html

I’m not sure why the Coastline Management Group is willing to pay $8.7 million to DMGS for the 174 lots, but it must be for something huge. As we know, $8.7 million is a lot of money.

From researching the history of the Coastline Management Group, I’m convinced that something major must be in the works and that they will definitely be able to come up with the funds and reveal their reasons for wanting the lots so bad.

Let’s now look at the Coastline Management Group a bit closer. Take a look at some of their Projects (and locations) already completed that are valued at $95,219,000:
http://www.coastlinemgmt.com/projects_maps.html

Deerfield Palms
Location in Dearfield Beach, FL
Value = $24,000,000

Lakeview Apartments
Location in Miami, FL
Value = $6,000,000

Waterview Apartment
Location in North Miami Beach, FL
Value = $4,500,000

Casa Blue Apartments
Location in North Miami Beach, FL
Value = $2,950,000

Palm Terrace Apartments
Location in Fort Lauderdale, FL
Value = $2,950,000

Harding Apartments
Location in Miami Beach, FL
Value = $2750,000

Waterway Apartments Project
Location in Miami, FL
Value = $900,000

Miami Garden Apartments
Location in Miami, FL
Value = $850,000

Cintex Building
Location in North Miami Beach, FL
Value = $3,500,000

Envirood Building
Location in Oakland Park, FL
Value = $4,200,000

Ideal Medical Building
Location in North Miami Beach, FL
Value = $2,950,000

Braithwaite Building
Location in North Miami Beach, FL
Value = $850,000

McNab Plaza
Location in North Lauderdale, FL
Value = $5,500,000

Parkway Plaza
Location in Pompano Beach, FL
Value = $4,500,000

Surfside Estate Home
Location in Miami Beach, FL
Value = $5,500,000

Hallandale Estate
Location in Hallandale, FL
Value = $3,500,000

Victoria Park Lofts
Location in Fort Lauderdale, FL
Value = $1,750,000

Casabella Townhome
Location in Fort Lauderdale, FL
Value = $1,250,000

Port Saint Lucie (Subdivided lots #2)
Location in Port Saint Lucie, FL
Value = $11,969,000

Okeechobee Subdivided Lots #1
Location in Okeechobee, FL
Value = $4,850,000

Again, to see the above completed Projects of the $95,219,000 worth in value by the Coastline Management Group along with pictures/maps, please go to the website below:
http://www.coastlinemgmt.com/projects_maps.html

After doing my DD on the Coastline Management Group, I’m not sure why they want those 174 lots so bad from DMGS, but I am convinced that they will be putting them lots to some good use that will be of a huge magnitude within Florida. The Projects I mentioned above are all COMPLETED Projects by the Coastline Management Group.

Something else to note, a friend of mine reminded me how DMGS and the Coastline Management Group both are located approximately right next door to one another. Observe their addresses below:

Coastline Management Group
12000 Biscayne blvd
Suite 222
Miami, FL 33181
Phone: 305.899.7238
Fax: 305.899.7241

Distribution Management Services, Inc.
11601 Biscayne Boulevard, Suite 201
North Miami, Florida 33181
(305) 893-9270

This is a very positive coincidence as DMGS “could” be the vehicle that the Coastline Management Group might be using to go public or vice versa meaning to take DMGS private. Hmmmmm??? Also, when you go to their website in the link below, you will see that almost their entire management team is very stock savvy:
http://www.coastlinemgmt.com/aboutus.html

I’m sure I am not the only one wondering where the residual or regular or recurring Income will be coming in from. Now I am hearing that other major real estate deals and mining ventures are definitely on the horizon and in the mix to confirm Income generation on a regular basis. I am not sure of the details, but I will let the company make those announcements.

A good strong hint as to where regular Income could be coming in from could be due to the fact that DMGS has won the court settlement for land in Argentina with an anticipated value of $25 million per year in Revenues from quartz, felder, and granite. See Page 9, para 1 of the Form 8-K filed below with the court’s decision filed too:
http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=5465771

From what I posted earlier, a 25% profit margin from the anticipated $25 million annually is conservative in my opinion. This would give DMGS Net Profit/Income from the mining portion alone of:

$25,000,000 x .25 = $6,250,000 Income

Now to get the Earnings Per Share (EPS)…

$6,250,000 ÷ 10,567,328 (OS) = .59 EPS

With using a 12 PE Ratio as the multiple for a conservative growth rate, then consider…

12 PE Ratio x .59 EPS = $7.08 Per Share Value

Some of the profits from selling some of their real estate could be enough to provide a good jump start to the mining of that land in Argentina to begin bringing out the anticipated $25 million per year since DMGS still have lots remaining to sell too.

Keep in mind too that the EPS scenarios above are two different yet very likely scenarios for the same company; DMGS. Both the .303 EPS and the .59 EPS should be considered to potentially give DMGS an EPS of .303 + .59 = $0.893 EPS combined for their real estate and mining deals filed in Form 8-Ks with the SEC as indicated above.

With using a 12 PE Ratio as the multiple for a conservative growth rate, then consider…

12 PE Ratio x .893 EPS = $10.72 Per Share Value

For those that have been told and read about the company going OTCBB first then shortly submitting its application for NASDAQ did probably not fully understand why DMGS would consider such since a minimum $4.00 bid is required as one of the NASDAQ requirements. This should help to shed some light as to where DMGS believes it is heading. The above real estate and mining deals/achievements are filed within the SEC which makes the thoughts shared on DMGS a little different than your average piece of speculation.

For all of the info above, please just don’t simply believe me. Call the SEC, call the Coastline Management Group, read the past and upcoming SEC filings, and call DMGS to verify what is happening for the growth of the company to confirm for yourself. I see DMGS as part of that 10% of penny stocks that actually makes it. I see DMGS as an investment and not a trade; long and short term. DMGS is for real and I think it is just a matter of time before many others will do their due diligence (DD) to see for themselves.

v/r
Sterling


Sterling's Trading & Investing Strategies:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29867262

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