Viasource Communications Inc. - VVVV Message Board

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Technology Stocks : Viasource Communications Inc. - VVVV

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To: Mr. L. Neufeldt who wrote (4)	10/5/2000 7:35:01 AM
From: Jim Oravetz	Read Replies (2) of 27

Viasource Communications Phone and cable companies have spent a lot of money advertising new high-speed Internet access. Trouble is, they haven't been able to deliver the services in a timely fashion. As a result, subscriber targets are being pushed out, and customers are growing impatient. But help is on the way. A new sector has emerged that handles the high-speed Internet installation headaches, and Viasource Communications (NASDAQ: VVVV), which came public in mid-August at $8 a share, has emerged as the industry leader. With 3,700 employees in 44 states, this is no dot com upstart. Viasource has been providing telecom installation services for over 30 years. DSL service and cable modems are just a natural extension of its business. The company bagged $130 million in sales last year and is well on its way to grossing nearly $220 million this year, according to DLJ's Karim Zia. By next year, he expects sales to surge another 70% and figures the company can earn $0.77 a share, before goodwill is amortized. Shares of Viasource have slumped since their debut and were recently trading at $6.13. As a result, they trade for about 8 times the estimate earnings per share. That's pretty cheap considering the company is expected to grow more than 35% a year over the next several years. Thanks to its recent IPO, Viasource also now has cash and a publicly traded stock with which to use as a currency for acquiring smaller competitors. And boy is this industry ripe for consolidation: Zia notes that "the company's closest outsourced peers are less than 20% of its size." individualinvestor.com Just parking this news. Jim

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