CALL NET ENTERPRISES (T-CN.B $11.25)Big upside potential Message Board

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Gold/Mining/Energy : CALL NET ENTERPRISES (T-CN.B $11.25)Big upside potential

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To: Sorin Marinescu who started this subject	10/26/2001 10:48:40 AM
From: Dan Hamilton	Read Replies (1) of 652

Hullo, anyone out there?? Let's recap... Call Net's market cap is $27 million (considering the total values of voting and non-voting shares) and they have recently stablized at a revenue run rate of $900 million per year. So that puts them at .03 price to sales ratio. Yikes! (Take a look at the market cap of Telus and AT&T Canada for comparison.) So apparently the market is valuing them as if they were headed for imminent bankruptcy. This despite the fact they have virtually reached their goal of zero cash burn now, and have $360 million on hand. Interest rates are going to stay low for awhile, and their long term debt does not become due until 2007 and beyond. Sprint U.S. owns 25% and has reaffirmed their commitment earlier this year. Foreign ownership regulations will be relaxed sometime in the next 12 - 18 months, likely leading to a consolidation of the players. Hearings have just concluded at the CRTC and Call Net and other CLECs petitioned for rate reductions from the ILECs. Reduction should end up being 30 - 50%, increasing Call Net's cash flow. Seems to me this has a great risk/reward at 25 cents.

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