Hi,
I have been a shareholder of BRW for some months, traded all one first time at mid 30s, then bought again at average 28. My reasoning was that Qwest, with a similar size network, but likely more fiber lit, more advanced in building data centers, more national business customers, and the USW client base going for it, is worth 37 billion, so BRW appeared undervalued at 5 billion.
Good street analysts like Reingold for First Boston, Grubman for Smith Barney and Quinton for Merrill Lynch have all upped their targets in the 46-55 range (46 First Boston, 55 Smith Barney, 50 Merrill Lynch). The company investor brochure lists a thoughtful analysis done by First Union with a 50 target and a similar, postive nore from Morgan Stanley.
I hope that all these people are eventually right, and that the stock will see the 40 number again at some point,
again my main thinking was that the fiber network seems undervalued within the context of the very well managed and profitable traditional Cincinnati Bell business.
In addition, they beat estimates with higher revs and a smaller loss, and they had very successful wireless and long distance stories, it seems like they are doing a series of bundled services which are very attractive to clients.
I hope they manage to get major business clients: a win like IBM has been for Qwest recently, maybe with Cisco, would be great.
good luck to all,
Alfredo |
