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Technology Stocks : PSIX up 26.5%, Takeover(?)
PSIX 78.17+8.2%11:10 AM EST
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To: Sandie who wrote (1525)11/14/1997 6:29:00 PM
From: blankmind  Read Replies (2) of 5650
 
my build versus buy had to do with istar, and this is why i believe it an exceptional deal for psix:
(i can not tell you how much one pop costs to open because that will depend on the equipment and line costs, but reading further on you can come up with a number of about 1.5 to 2 mil avg for what istar spent on equipment and the number of pops redone in major cities.)

1. 40 pops in canada
2. eight lagrest cities in canada istar just put in new/upgraded centers
3.revenues for 1996 almost 20 mil (this alone can justify a purchase, if one considers psix prchased the company for one times revenue, almost unheard of)
4. over 70% of revenue from commercial customers (this is the current psix model)
5. istar purchased almost $18 mil of isp's in canada in the past year
6. 1996 istar spent 6 mil on equipment and property
7. 1996 istar spent 16 mil on telecom leasess

i really believe looking over istars business, this was a sellout hoping that psix can bring up istars share price and, this is speculation, psix is positioning themselves for a buyout.

the infrastructure of the pops alone, the largest 8 at 16 mil, and the 32 dwarfs at 200k ea/avg (i believe this is low if you know how much equipment costs) is 6.4 mil for a total of 25 mil.

revenues, accounts, name.... not a chance could psix do this and have it operational in a year for 25 mil.

each acquisition needs to be evaluated independently.

i am taking the data for istar from there annual report which can be found at:

istar.ca
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