Alphanet Telecom, WOW ! Message Board

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Technology Stocks : Alphanet Telecom, WOW !

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To: RBMac who wrote (86)	2/20/1998 9:48:00 PM
From: wynn quon	Read Replies (1) of 117

By coincidence, I've been looking at Fonorola (FON on the Toronto Stock Exchange) as well... It looks pretty good. They've been growing quickly through acquisitions and they've handled it well. I like the idea that they're building their own fiber network. This could turn into a valuable asset. In the meantime they are still paying a fair amount in carrier fees. At around $30, it's an ok buy. I'm tempted to wait for $20 when it would be a cheap buy but that might never happen. The stock took a hit a few weeks back when Bell announced long-distance price cuts. There was also news about overseas rates dropping by 30%+ in the next two years. It looks like the challenge is the rapidly falling price of bandwidth. To its credit, Fonorola is one of the most efficient operators out there, so they may do well. Last year sales were $400 million. Current market capitalization is around $600 million. P/E is right up there at 50+, the margins are still not that good. A strategy to handle it would be to take a small position now and then go in for more if it gets cheaper (assuming nothing else has changed).

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