COM21 (CMTO) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : COM21 (CMTO)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: zbyslaw owczarczyk who wrote (1903)	2/29/2000 7:18:00 PM
From: zbyslaw owczarczyk	Read Replies (1) of 2347

Merrill Lynch Research Bulletin 2/29/00 (COM21 and others) ragingbull.com This is from Bloomberg but the story has yet to link to the bloomberg.com site yet Telecommunications/Network * Comments on Terayon (TERN $265, D-1-1-9) and Com21 (CMTO $73.5; D-2-1-9) following press reports that Time Warner and AOL may open thier cable lines to Internet service providers. * We view this as a positive development for selected cable modem companies, particularly Terayon and Com21. both companies sell most of their cable modems directly to cable operators, an arrangment which effectively means that the cable operators own the subscriber in their own given region. * this is somewhat in contrast with the DSL market, where a new breed of operators have emerged over the last several years from competitive exchange carriers. Companies such as Covad (COVD $85, D-1-1-9) and Northpoint Comm (NPNT $23, D-1-1-9) are competitive ISP's who provide service over some of the same lines asselected regional bell operating companies. * We beleive this has been one of the reasons why DSL equipment companies have traded at a premium to the cable modem companies. the DSL equip. co's are currently trading at approx 25 times calendar 2001 revenue estimates. * By comparison, TERN presently trades at 19.5x 2001 revenues est. and CMTO is trading at just 6.5x revenues. Although both companies have had significant price appreciation since we initiated coverage, we still view the stocks as more attractive from a valuation perspective than some of the DSL equip. companies. * We also think that news items will be more of a driver for the shares in the near term, and we expect that both companies will announce contract wins over the next 2-3weeks. ragingbull.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next