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Technology Stocks : utcc on the move

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To: Pluvia who wrote (16)8/31/1999 5:01:00 PM
From: Pluvia   of 42
 
WHY UTCC's REVENUES MEAN NOTHING

Anyone who knows the Telco biz, will tell you revenue in little a telco biz can be manipulated to just about any number you want.

It's easy, revenue is produced by running minutes through a switch. Problem is, you need to get paid for those minutes... AR collection in reselling international minutes is TERRIBLE.

But to a rookie big revenue makes you think things look good. Wrong.

I'll give you a perfect example of another international telco reseller that WAS pretty much the best in the biz - STRX...

Last year's revenue was about 500 million and they did nothing but lose money... This year they're on target to do 1 billion in revenue, but they may go bankrupt in the process - stock trades in the 5-6 range...

No second, third or fourth tier international Telco is doing very well and the competition in the biz is not getting any easier - don't expect UTCC to do better than any of the other companies in this biz.

UTCC is not NTOP and they aren't even a good international telco reseller.

IMO UTCC is nothing more than a stock selling company...

Insiders will end up making more selling stock than the company will ever make as a telco. And you get left holding the bag - congrats!!

All comments are the express opinion of the Author - all rights reserved...
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