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Author: andydee One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35  
Subject: Anyone Else? Date: 8/2/1997 7:59 AM
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Sorry for the delay in answering, I've been away, helping my daughter and son-in-law move.

The two individuals in question are Norm Barkeley and Joe Berenato. Barkeley is the main man and Berenato is his hand-picked protege/successor.

I'm doing this from memory, as it's my second attempt. My modem is on the fritz, and I'm hurrying to complete this before it craps out again. Barkeley joined Dco board in 1987. He was CEO of Lear-Siegler at the time, a company he helped grow from$32 Mill sales to $2 Bill in sales. DCO had 4 lousy years in a row, price of stock dropping from 40 to 5, and sold off their main business, electronic parts distribution to Arrow Electronics. Barkeley was asked to be CEO and Chrman in 1988. DCO was at that time highly unattractive. It had a negative net worth and only 4 small aerospace/aircraft industry firms in its portfolio. Over the next few years Barkeley focused on cost cutting, paying down debt and increasing cash flows. Sales rose modestly. In 1991 Barkeley hired Berenato, who has a great academic resume, (West Point, U Va, NYU), and had worked at Manny Hanny, as VP and CFO. In Dec 1994 they bought two companies, and in Jan'95 a third. This is the approach Barkeley had used at Lear...small unshowy acquisitions of public and private companies that meshed well with their existing components. They financed the purchases through internal cash flows, (they had a ton of NOL's from the bad old days), LOC and an issue of Convertible Debentures. Sales jumped 40+% in 1995 and 30% in '96.

Joe was made President in '96, and CEO later that year. Barkeley had a 5 year contract, apparently at his request, which expired on 12-31-96, about the time he turned 65. I think he is staying on to give Joe a hand for a while, but Joe is definitely the future at DCO.

DCO is profitting because of the boom in the aircraft industry and because of the secular shift to outsourcing. Their biggest customer is a major vendor of Boeings.

I think the price is gotten a little ahead of their value, but I'm not selling. DCO is a 3 bagger, and I won't sell until Joe does something stupid, which I'm not anticipating

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