SI Sy, I see that you have kept a level head, even though your HSA investment is sitting on some pretty tough paper losses. To me, that distinguishes you from the ones who, like you, for one reason or another, did not put in a stop order at a 25 or 30% loss, and then further sabotage their investment by making detracting remarks about the management and the company.
You must admit, HSA should have never went to $50 high, except for the so called Tech bubble that had everyone buying Technology companies for ridiculous amounts of money. I do believe that HSA will be trading somewhere around $10-$12 after the first of the year. This is a yearly ocurrance with Internet and Tech stocks during the summer sell off, where everything said is negative, and everyone is sitting on the sidelines. The biggest profits to be made is to buy during these sell offs as they always pick up steam after the first of the year.
I have a IR packet from HSA and I can see where revenues increased, along with business each quarter since the IPO. They are also in a partnership arrangement with Lucent whereby they get free use of all of Lucent's equipment so that they can offer hi speed telephony with their customer package. Lucent is also putting up a sum to buy stock in HSA. It seems that all the large corporations are taking a stake with no hesitation. But the small investor, who has not doubled his money as expected, but is having to wait for this start up to bring all the pieces together is howling like a dog because their horizon is longer than expected. The bubble has burst, and we will have to be satisfied with growth to bring this baby back up to where it was at one time.
HSA is also offering DSL Access to areas that do not have cable and has immediate future plans to offer satellite arrangements to businesses.
Here is a copy of a post from the RB thread. I am sure the gentleman won't mind since he wants to see HSA get the extra press as well as I do.
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By: rumcrook $$$
Reply To: 2910 by SevenYearItch $$$ Wednesday, 27 Sep 2000 at 11:49 PM EDT
Post # of 2972
HIGH SPEED ACCESS CORP.
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(Nasdaq-HSAC)
Sector: Technology
Industry: Computer Services
hsacorp.net
GROWTH OPPORTUNITY
High Speed Access is rapidly developing an online Internet service that will use cable lines to get users on the Internet. Paul Allen, (Microsoft Co-founder) owns around 54% of the company. Other key players came with their millions and bought shares in addition to the 13 million shares that were sold to the public in the recent IPO. Microsoft (MSFT:Nasdaq) came in with $10 million, Cisco Systems (CSCO:Nasdaq) bought $7.5 million for a stake, and Com21 (CMTO:Nasdaq) put up $1 million for its own interests. Lehman Brothers and J P Morgan were managing underwriters of the IPO.
DESCRIPTION
High Speed Access contracts with cable-TV operators to provide fast Internet access via a cable modem to residential and commercial end-users in so-called "ex-urban" areas where cable systems pass fewer than 100,000 homes. This allows HSA to offer Internet access via both high-speed cable modems and standard dial-up service. They serve more than 5,000 customers (including 2,800 cable modem users) in 14 markets in 11 states. Vulcan's Charter Communications cable unit has agreed to give the company rights to at least 750,000 homes passed.
ANOTHER INTERNET GO-AROUND FOR PAUL ALLEN
HSA is yet another online Internet play for Paul Allen since 1993. Co-founder of Microsoft and Billionaire Paul Allen tried owning a controlling position in a little known company years ago known today as America Online Inc., (AOL:NYSE) which eventually took hold and whose stock has recently screamed over 500% since last October, 1998.
The mogul eventually sold his 25% stake in AOL a few years ago. Allen currently runs Vulcan Ventures of Bellevue, Washington founded in 1996. Allen invests in companies which offer products, services or technologies that fit his wired-world strategy, and can contribute to or benefit from the technology and strategy of other Paul Allen companies. paulallen.com
According to people close to Allen and AOL's Steve Case, Allen's chief investment advisor, Bill Savoy, has recently visited Mr. Case and others at AOL's headquarters in Virginia. Since Mr. Allen is now one of the largest cable system owners in the country and AOL knowingly wants to offer high-speed access to its online service using cable lines, among other things, there may very well be a deal in the works.
Additionally, since there are reports that AOL has had a less than gratifying experience working with AT&T Corp., now the biggest cable operator, people "in the know" say that AOL is trying to build alliances with other cable enterprises like HSA. Neither Mr. Allen nor AOL would comment on speculation of any deal.
RECENT DEVELOPMENTS
Besides Microsoft and AOL, the last deal Paul Allen plunked down $300,000,000 in was Go2Net (GNET-Nasdaq) at around $119.50 per share. The stock split 2:1 recently on June 24. His cost $59 3/4. GNET stock has split twice since March 1999 and continues to do well.
On August 5, 1999 HSAC announced a series of agreements that will expand the Company's national footprint by approximately 300,000 homes passed. These agreements increase HSAC's homes passed under contracts and LOIs to approximately 1.8 million. These totals exclude approximately 10.6 million potential homes under equity incentive-based agreements with Charter Communications, Inc., Road Runner, Classic Cable and Cable Management Associates.
On August 10, 1999 High Speed announced revenues of $641,000 for the second quarter ended June 30, 1999, an increase of 604% over net revenue of $91,000 generated for the period April 3, 1998 (Inception) to June 30, 1998. HSAC's residential cable modem customers increased 64% to 5,195 from 3,169 at March 31, 1999. As of June 30, 1999, HSAC had commenced full operations and begun marketing its services to 740,000 homes passed by its cable partners systems, a 132% increase for the quarter. HSAC currently has the right to offer services to 1.8 million homes passed under existing contracts or letters of intent, and has commenced deployment activity for an additional 900,000 homes passed pending completion of definitive documentation, for a total of 2.7 million homes passed. These totals do not include approximately 10 million potential homes passed under equity incentive-based agreements with Charter, Road Runner, Classic Cable and Cable Management Associates.
This is all great news for HSA, which just completed its successful IPO in June, 1999.
CONTRACTS
There are contracts covering a total of approximately 215,000 homes passed were signed with Classic Cable, Cable Management Associates (CMA), Midwest Video Electronics Inc., Nesbe Cable, Rapid Communication Partners LP and Peak Cablevision. Under these agreements, HSAC will provide full turnkey Internet access services; network design, development and operations support; a state-of-the-art network operations center (NOC) with customer help desk; and marketing, billing and technical management support. The Classic Cable and CMA agreements include equity incentives for Classic and CMA to provide HSAC with up to 600,000 and 200,000 homes passed, respectively.
Contracts for full turnkey connectivity services have also been signed with four operator members of the National Cable Television Cooperative (NCTC), a national organization which represents over 900 MSO members which own more than 5,600 individual cable systems serving over 10 million subscribers in 50 states. The operators are Rogers Cable, Haefele TV Inc., Watson Cable and Suburban Cable. In May 1999, the NCTC signed a national services agreement with HSAC to offer high-speed data and Internet access services to its member cable television systems and their subscribers. Under the agreement, NCTC member operators have the option to take HSAC's complete end-to-end high-speed Internet access service under standardized terms and conditions.
HSAC has also signed letters of intent with Powers Communications, Carnesville Cable TV, Inc., Kraus Cable, Rifkin & Associates, STC Corporation and Community Cable Television Co. These new LOIs comprise approximately 55,000 homes passed.
Lastly, on June 30, 1999 following the "quiet period" of the initial offering, three firms issued BUY recommendations on the company. They were J P Morgan, Banc of America Securities, and Lehman Brothers. Additional opinions should follow.
SUMMARY
With the explosion that is currently taking place among the online Internet service providers and the cable industry, the success and financial backing of HSA make this company appear to be solid. Also, with Paul Allen's insight and leadership, (found in his successes with MSFT, AOL, and GNET) coupled with more households coming online daily, strong market demand, and key strategic alliances, is expected to place these factors in making High Speed Access a future Internet leader and an emerging stock for consideration to add to any investors portfolio.
This report provides only general information and is not an offer or solicitation to buy or sell any security. The information contained herein has been obtained from sources believed to be accurate and therefore do not guarantee the reliability of that information. Marketing consultants for the firm may be paid in stock and or cash, and may hold a long or short position in the company at any given time. Also, the opinions expressed on this report comprise our best judgment at the time of writing and are subject to change without notice.
(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)
I would also appreciate any additional comments that you may have. I am especially interested in the Nov. conference call. I am expectant that HSA will have some barn burner news.
Cowboy |
