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Microcap & Penny Stocks : ISGI ANYONE????

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To: Keiko who wrote (1910)8/29/1996 7:38:00 AM
From: garden_man   of 2665
 
Keiko,

Plain and simple, customer base and the ability to switch your own calls. Resellers come in two flavors, "facilities based" (those who own their own switches) and "switchless" (those who buy time from the larger "switched base" resellers.

ISGI is a facilities based carrier. This is very attractive to a larger carrier or a local bell operating company.

This whole industry dramiticly changed when Congress passed the Telecom Reform act of 1996 in February. Companies like ISGI can now offer local phone services!!

My take on ISGI. They will begin to aquire some smaller LD companies to increase their customer base. The larger base you have, the better you can negotiate with the bigger carriers. Thus reduce your costs and increasing your margins.

Also, I think ISGI has put together a strong management team.

I cited an example in a previous post of a company that we work with. Americonnect, a Kansas based switchless reseller has been aquired by Phoenix Networks, CA based switched reseller. Americonnect is (was) an 18m dollar company. There were bought out at about 2.00 per share. They are currently trading at 1.62. Phoenix is trading at about 5.50. These are comparable companies!!

Long term, ISGI has to be planning to be aquired. That is the nature of the beast right now.

I hope the PW rumor is true! This will put us into the dollar ranges in now time at all!
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