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Technology Stocks : PSIX up 26.5%, Takeover(?)
PSIX 59.46-2.7%Dec 5 9:30 AM EST
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To: Ken Turetzky who wrote (2055)2/19/1998 2:55:00 PM
From: Ed Frye  Read Replies (1) of 5650
 
Nice article in local paper (Albany,NY) today about PSIX -

"Fiber-optic deal helps strengthen PSINet's future"

highlights:

....after years of cash outflow company may have found the financial shut-off valve.....

...a flurry of recent deals, one nondeal and other events have put the company and its stock on better footing than it was on only 4 months ago......

.....quotes analyst from Pacific Growth Equities, "i expect them to break even in the 4th Q"......

....analyst sez it is premature to say company has turned the corner but a sustained recovery is possible.....

....last week company reported $21 MM losses excluding dep/amt, down from $28MM year ago......

....finished year with $54 MM cash, thanks in part to $30 MM from Nov convertible preferred stock offering.....

....Peter Wills, exec VP and COO at PSI sez they have enuff cash to get through 1998.......

.....after that, balance sheet will improve as revenues grow sharply and costs decrease.......

....owning rather than renting bandwidth will be financially liberating.....instead of paying $0.06/mile, will pay $0.006....

....beyond cash savings, this asset can be used as collateral to raise more cash......

.....company recently gobbled up ISPs in canada/france/switzerland...

....predicts revenues will double in 1998...............

....a new venture will be into voice over IP.................

....notes stock has doubled since mid-dec........

.....Wills sez takeover bid was barely serious......

.....mentions stock must go to $24 in next 4 years or PSI has make good to IXC..............

Above would suggest stock price is expected toincrease proportionally to revenues.

Down 1/2 today. Need to establish post-earnings bottom and begin our climb from there. Maybe today is the bottom.//ed
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