March 12, 2001
Dow Jones Newswires
Winstar Commun Off 26%; Analyst, Co Cite Mkt Conditions
Dow Jones Newswires
By Maxwell Murphy
Of DOW JONES NEWSWIRES
NEW YORK -- Shares of WinStar Communications Inc. (WCII) fell to a 52-week low of $6.66 Monday as a fierce selloff in the broadband telecommunications market continued.
The stock hit its previous 52-week-low of $9.56 Friday.
It was "pretty much a tech bloodbath" on Wall Street Monday, said Rick Grubbs, Credit Lyonnais Securities Inc. analyst.
He maintained his buy rating on the stock and a $47, 12-month price target.
WinStar spokesman Kevin Cavanaugh noted that the "whole market" is having a down day and stressed that the company has continued to execute its business plan.
He noted that fourth-quarter results posted two weeks ago showed revenue increasing for the 15th consecutive period.
WinStar will reach break-even earnings before interest, taxes, depreciation and amortization during the next quarter, he said.
The $1.02 billion in financing the broadband telecommunications provider received in November will sustain its business through the first quarter of 2002, Cavanaugh added.
Shares of WinStar closed Monday down $2.56, or 27.8%, on volume of 8.9 million, compared with a daily average of 3 million.
-By Maxwell Murphy, Dow Jones Newswires; 201-938-5173; maxwell.murphy@dowjones.com |
