Gabor, I wouldn't be worried. Nearly every CLEC stock is drifting lower. Check out Teleport, ICG, GST, MCLD, ARTT, etc, etc. Their charts all look like WinStar's. But I think the whole group is going to continue it's upward move. I think the big money and momentum players play it this way on purpose, letting the drifting and low volume cause all the weak holders and traders to lose interest and bail out. Just don't be one of the weak holders.
I don't think the recent acquisitions is causing any weakness. And the preferred's were just sold to pay for the acquisitions, so they're kind of one and the same. In any event, I don't think any payments are to be made for something like 5 years. By then, WinStar's revenues ought to over a billion and the acquisitions ought to be paying for themselves. I would think rather than delaying positive cash flow, the purchases ought to do the opposite.
To me, now is the time to hold tough and add to your position if anything. Great times are ahead. Ali, we're gonna get rich yet!
PS Teleport moved up nice this afternoon on no news I could find. Maybe that'll signal signs of life in this sector. |
