RMII Message Board - Msg: 10759248

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Technology Stocks : RMII

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To: architect* who wrote (291)	7/31/1999 7:48:00 PM
From: E_K_S	Read Replies (1) of 345

Thank's John - I believe we both arrived at the same conclusion of value; yours on price to sales and my review based on cost per subscriber. I am a bit uncertain as to how the end game will eventually be played out by RMII. To obtain the economies of scale and grow subscriber usage it appears to me that RMII will need a major partner to bring the rest of the backbone infrastructure together. Do you see this as an eventual outcome for RMII? Or can they build this business without the economies that a large integrator can provide? DSL services to RMI are currently provided through an alliance with U.S. West. I am not sure who's lines they use for the long distance service but development continues on IP telephone services. The Bio of CEO Hanson is strong: "...Douglas H. Hanson is a known leader in the telecommunications industry. Mr. Hanson came to RMI from Colorado-based Qwest communications Co. where he was president and CEO, as well as the founder of Qwest's predecessor, SP Telecom. During his tenure at SP Telecom and Qwest, Mr. Hanson grew the company from zero revenues in 1987 to a telecommunications powerhouse with more than $150 million in revenues by 1996..." (http://www.rmi.net/home/whatsnew/biodoug.shtml) I guess if there is anybody who knows how to play this end game CEO Hanson has the experience. I am sure he has the contacts in the industry to make these investments in new users pay dividends to the shareholders in the future. =========================================== I have been selling naked Puts to acquire stock that I see as a good hold for the next 12-18 months. However, at some point in time I see RMII merging or being purchased by a larger integrator (i.e. U.S. West, Sprint, SBS....) for a very good premium. I believe earnings are reported August 7, 1999. Hope the revenues continue to show excellent growth and the expected loss is narrowed. EKS

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