11:05am EST 13-Feb-01 Hoak Breedlove Wesneski & Co. CASY ROOM ARTT EFNT
HBW: EFNT, CASY, ROOM, ARTT Updates
Le Keough, CPA,
Eric Willer,
Advanced Radio Telecom (ARTT-$2 27/64-Accumulate)
Current FY EPS: ($2.92) / Next FY EPS: ($3.11)
* Lately, Advanced Radio Telecom has shown a little resiliency. The stock has
risen 135% since the New Year, from roughly $1 to yesterday's close of $2 27/64.
* The key to ART's strength has been the execution of various initiatives
implemented by new CEO "Zie" Rivers, the most important of which appears to be
the new BroadstreamTM Internet Access service. The service simplifies ART's
pricing by offering customers Internet access "burstable" up to 100Mbps for only
$1,000 per month.
* The new Broadstream service has been available in ART's nine markets since
January 9th of this year. During this period, ART has signed-up over 80
customers.
* The service, which can be provisioned in only 10 days, is highly scalable,
offers "plug and play" access to most LANs, and boasts carrier-class
reliability.
* Given ART's precarious financial position, we believe this initial level of
success for Broadstream must be ongoing if Advanced Radio Telecom is going
succeed in raising the necessary financial capital to continue operations
throughout the year.
* We are optimistic that the company will successfully demonstrate the value of
the 39GHz spectrum and the business case for high-speed wireless MAN (metro area
network) services. However, we remind investors the company will need a
substantial cash infusion by the end of the second quarter, and that this
financing potentially may be dilutive to shareholders. At the same time, any
financing should prove to be a positive catalyst for the stock. We continue to
follow ART's progress with a rating of Accumulate. |
