Hi everybody,
I recently opened an account with Morgan Stanley, and I really enjoy reading their research, very good technology and telecom reports. They have issued on July 24 a strong buy rating on GENU (of course, since they took it public) with a target of 21.
They have a website named ClientServ where you can read all research in real time, very nicely done.
GENU should have a revenue of 1 billion plus this year and MSDW estimetes rev of 1.8 bil next year 2001. That gives it a price/sales ratio less high than now.
They describe the manaement team which has truly some of the best people of BEL and GTE and BBN. The recent deal with HP should be good. GENU however , from what I remember, seems very much behind in terms of web hosting to EXDS and maybe even to Q. The large capex announced by GTE should address this issue by expanding the POPs and building new data centers.
Also Smith Barney has recently issued a buy with a 15 target, if I am not mistaken.
All these are good news, the stock should be good for the long term. The AOL contract should be good until 2004-2006, of course GENu will be losing money for quite some time. It will be interesting to see if GBLX and EXDS do a deal. GENU is in strong position, but it looks like it needs to catch up for square feet of data centers and POPs.
good luck to all GENU fans,
Alfredo |
