Re. MFNX:
It was only one of 2 green arrows in my portfolio today, as per the following. Looks like more green arrows ahead.
Metromedia Fiber Revenue Doubled in 1999; Shares Rise
White Plains, New York, March 14 (Bloomberg) -- Metromedia Fiber Network Inc. said annual revenue more than doubled while the value of contracts quadrupled, helping to send shares of the fiber-optic cable company up 16 percent.
The shares of Metromedia rose 12 3/8 to an all-time high of 91 7/8 in Nasdaq Stock Market trading of 6.3 million, more than double the three-month daily average.
The White Plains, New York-based company said 1999 revenue rose to $75.2 million from $36.4 million in 1998. Metromedia increased the value of its contracts to $2 billion at the end of last year from $400 million at the end of the previous year.
The increased contracts show the company's business plan is ``on track,' boosting investor optimism, one analyst said.
``People see business is going well for an Internet, optical networking company and people buy the stock,' said Vik Grover, an analyst at Kaufman Brothers, who rates Metromedia a ``buy.'
Expectations about the company's future entry into Latin America and the Pacific Rim are also pushing the shares higher, Grover said. He said he expects Metromedia to enter Japan within the next several months.
Metromedia is building a network in 67 metropolitan areas in the U.S. and abroad that can carry video, Internet and data traffic for businesses.
The company, which first sold shares to the public in October 1997, has seen its share price more than triple in the past year. Metromedia's investors include Bell Atlantic Corp., the No. 2 U.S. local-phone company, which owns 19 percent.
Being in the early stages of development, the company is investing heavily in its business. Its loss for the year widened to $114.9 million, or 28 cents a share, compared with net income of $986,000, or zero per-share, due in part to increased investment in the company's fiber-optic network.
Mar/14/2000 16:27
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