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Technology Stocks : RCN Corp. (RCNC) - Voice-Video-Internet

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To: Pierre Borczuk who wrote (569)5/5/2000 8:21:00 AM
From: BostonView  Read Replies (2) of 720
 
" In addition to the many strategic investors in RCN, our senior management team is substantially invested and continues to purchase shares. In the first quarter alone, our management team purchased several million dollars of stock, and not as a result of the exercise of options," said McCourt."

Well, all the key metrics look solid, except for revenue growth. Looks like some minor canibalism from the on-net option, but more due to poor retention in the dial-up segment. A short-term issue (perhaps), as Resilink is the future.

I'd say RCN is approaching a key inflection point. Needs to focus not only on building the network, but building the brand, as well. Cable camp (cross-training) is crucial, as will be mindshare. They seem to have done a very good job here in the greater Boston market fighting a ground war -- house by house cold-calling. I'd love to see the numbers broken down town by town.

All in all, the severity of this sell-off looks "manufactured". One down, one to go (economic data). I'm still a buyer today. In size.

BV
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