Looking at the new little chart we now see each time we log onto this thread has me studying this news release more carefully...
siliconinvestor.com
So here are some casual comments on this FWIW:
First the PR:
>RCN's Megaband(TM) Network is a unique broadband fiber-optic platform capable of offering a full suite of communications services -- including fully featured voice, video and high-speed Internet -- to residential customers>>-->And...
RCN's high-capacity local fiber-optic networks target densely populated areas comprising 44% of the US residential communications market spread over just 6% of its geography...we added two major markets -- Queens and Philadelphia...we have also constructed over 1,000 route miles of local fiber-optic plant in the first three months of this year...>> --Sounds like they are serious players and going for it big time.I see this in line with all the cable companies mad dash to secure a large client base ASAP. IMO cable and or Bundled Broadband Fiber-Optic (BBFO)has taken a back seat in the Market to any and all wireless this past six months. It's a race to market share and access to cost affective IT (information technology). Who will win? Both will but BBFO just does not have the glamour that Wireless has been basking in.
Cable/BBFO will have its day. The huge infrastructure cost of creating affordable residential access to the current and foreseen IT toys has reflected in the share price of most related companies. They are down and moving very slowly-sideways or lower. Buy opt.? Maybe. But what IS a buy opt these days?<grin> RCNC at 46?, 36?, 26?-or $6 bucks?
If we are willing to sit through the dragged-out, roll-out of this infrastructure for a couple of years, it will not matter what price we pay today, RCNC's pay days will arrive, slowly but surly.
So as BV and LoF keep loading up as the price goes down, I am a little envious because I am cash poor at the moment!<g>
Who knows for sure how long direct access will hold as a strong player in the years to come, but my guess it will be big for the masses for at least six years, giving us investors a window to earn a profit.
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>A strong 21% increase in on-net revenues offset the decline in off-net dial up subscribers resulting from increased competition from free Internet and broadband services.>>-- The 'free-Internet' ploy has drawn some business away, but they are building a captive client base nonetheless.
>...in the quarter ended March 2000 was a loss of $69.9 million as compared to a loss of $54.3 million in the previous quarter... was the result of increased operational costs associated with employee growth and the expansion in new and existing markets.>>--All part of what must happen to place this company in contention for the future.
> "The recent turbulence in the market does not reflect the fact that we are building a valuable asset for the residential market." >>--So true.
>"In the first quarter alone, our management team purchased several million dollars of stock.">>--They are demonstrating a solid confidence in their future, or is this just a cute PR ploy? Probably both.
>In February, Paul G. Allen's Vulcan Ventures closed its $1.65 billion investment in RCN.>>--Yeah good ole Paul's pockets lets the company vamp-on and gives RCNC their debt PHD...(Piled Higher and Deeper)
> "One of our core values is to never enter a new market unless it is pre-funded to profitability">>--Interesting concept, "pre-funded for profitability." Sounds good but just exactly does that mean?...PA's PHD??
> ...RCN has now received Federal Open Video System (OVS) approval...Once regulatory approvals are received, design and construction of the network begins and the market is ready to serve customers in 12 to 18 months... >> --I believe this has been an important development for all concerned; new doors can open.
Also, that is the time-frame I see to when we will see the value of this company begin to truly reflect in share price, a year or two.
> ...Over 40% of the company's technicians have now been trained on all three services...>>---This has been a real problem in many fast ramping companies, technically trained service personal. It has really impeded both roll-out and subsequent customer relations in many companies. However, they are on it.
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>Some of the statements made by RCN in this press release are forward-looking in nature>>---Well we have to look forward to something! <grin>
Disclaimer--I am only learning to try to understand the workings of companies like RCNC so as to be a better investor so take my comments in this light. I have held this security, but do not hold shares at the moment,
Puna |
