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Technology Stocks : WorldGate Communications, Inc. (WGAT)

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To: BobRealEstate who wrote (458)9/1/2000 6:02:32 AM
From: arnold silver  Read Replies (2) of 589
 
This is the first part of a new analyst,coverage
there 4 more pages

05:00 PM Aug-31 00, 1 pages, Pennsylvania Merchant Group, Analyst: Achramowicz/Bukley
Initiation Coverage Part 1 of 2 WGAT

Initiating Coverage Of This Cable-Based Interactive Television (iTV) Pioneer
With a BUY Rating and a $75 Price Target; BUY

* Interactive Television Market is enormous offering numerous revenue streams
from equipment sales, advertising fees, transactional fees and Internet
access fees to iTV players targeting the sector. Jupiter Communications
projects that interactive television will be in 30 million households and
represent a $10 billion revenue opportunity by 2005.
* Billions of TVs exist throughout the world and at least 240 million can be
accessed via cable networks worldwide today.
* WorldGate's Technology is the only iTV technology in the world, which is
compatible with both advanced analog and digital set-top boxes.
* Revenues up 383%, subscriber base rose 126% in latest quarter; expect very
strong results in current quarter. Company has deployments throughout the
world.
* Received $24.5 million investment from large cable consortium involving four
of the six largest MSOs in the U.S. This consortium has agreed to deploy
hundreds of thousands of WorldGate subscribers over the next twelve
months-perhaps 400-600 thousand at minimum. TVGateway platform could reach
over 40 million homes or roughly 25 million subscribers from this investment
alone.
* Believe stock is very timely with tremendous upside potential as customers
realize the significant advantages of Worldgate's technology, 3Q2000 should
be very good.
* Believe major trials with AT&T could result in very large commitment from
that firm.

Market Cap (Million) $424.6 52-Week Range (NASDAQ) 13 - 50
Avg. Daily Trading Volume 276,818 LT Debt to Total Capital NIL
Shares Out (Million) 21.5 Projected 5-Year Rev Growth Rate 100%

1999A 2000E 2001E
OLD NEW OLD NEW
Mar. ($0.68) - ($0.50) - -
Jun. ($0.42) - ($0.51) - -
Sept. ($0.40) - ($0.48) - -
Dec. ($0.50) - ($0.46) - -
FY ($1.89) - ($1.96) - ($1.39)
Cal. - - - - -
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