In my opinion, Savvis is going to be an outstanding Long Term holding. I agree with contributors on a different discussion thread who cited the following reasons why Savvis should prove to be an excellent stock:
1) Savvis deals in three primary products- Internet access, Managed Data Networks, and colocation/cohosting. All of its real competitors only deal with one of these facets: InterNAP=internet, IXnet= MDN, Exodus= colo/coho. Check out where these companies are trading!!!
2) Savvis truly has the most advanced backbone. InterNap has similar technology, but on a much smaller scale. Third party tests have proven Savvis to be the fastest. Savvis has been ranked #1 more times than any other ISP in the third party Keynote Systems Tests, over MCI/UUNet, Sprint, PSINet, GTE/BBN, C&W, AT&T, Intermedia/Digex, and others.
3)SAVVIS Customers include: Adforce, AT&T Wireless, Babycenter.com ,ARCO ,Ebay ,CDNow, FileMaker, Encyclopedia Britanica ,OMRON Electronics, Inc., InfoSpace.com , Reiter Associates, Inc., PointCast, Inc., Siemens, Rogers Telecom Inc., Towson University, United Bank
4) Much of Savvis' fixed cost will be covered by the service agreement they entered into with Bridge, which runs through 2010. Bridge is currently #2 behind Reuters in providing market data to the world's leading financial institutions-- to mention a few, look closely at where E-Trade and CNBC are getting their stock quotes. Savvis is going to provide the network upon which much of the world's market data will traverse. These financial institutions also represent prospective customers for Savvis --- for other network services. The facilities are already in place, the cost to provide additional value add should be minimal (i.e. VPNs, DSL, Hosting, etc.)
5)I live near the corporate data center. I see first hand the $300MM in infrastructure construction that will be online sometime in 2001. These people are going to be serious players in the market.
I'm in SVVS @24 for the LONG HAUL! |
