Jill: Grist for the mill.
Talk : Web/Info : Phone.com [PHCM]
To: Walcalla (742 )
From: Walcalla Wednesday, Dec 15 1999 10:15PM ET
Reply # of 744
Here's some good news, let's hope everyone else finds out..........-----------------------------------------------------------
4. At the Heart of the Internet Phone (PHCM)
Momentum investor Carlton Lutts says he may have found another
early-stage Microsoft in Phone.com (PHCM); the company offers
"a revolutionary product to a worldwide mass market with a cost
structure that should bring huge profit margins." Phone.com got
Nokia, Ericsson and Motorola, the three top wireless phone
makers, to agree on the company's standard for offering
Internet services over wireless networks. More than 150
companies signed up since then, and Phone.com charges them
license fees based on the number of subscribers using the
service.
Lutts sees enormous income potential as analysts estimate the
number of digital wireless subscribers will grow from 187
million in 1998 to more than 600 million by 2002. A number of
network operators have already deployed Phone.com's software
including AT&T Wireless, Bell Atlantic Mobile, Bell Mobility,
GTE Wireless, LG Telecom and Sprint. "They're happy to do it
because they want to sell their customer more airtime," Lutts
says. Phone.com enjoys a sales and marketing relationship with
Lucent and protection from over 60 patents.
Sales grew from $1.8 million a year ago to $8.5 million this
quarter, divided equally between the US, Asia and Europe.
Phone.com has no debt and losses per share shrunk from $0.78 a
year ago to $0.16 in the last quarter. Lutts' indicators tell
him that investors are busy accumulating the stock,
particularly on pullbacks. "Our advice is to buy a little now.
Then, if you're ahead a month later, buy some more," he says.
He reiterated his buy recommendation in his latest hotline. |
