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Technology Stocks : CellularVision (CVUS)

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To: Robert Scott who wrote ()12/24/1996 11:34:00 AM
From: Yong Kim   of 17
 
Robert,

I am glad someone started to talk about this company. I bought the stock at $7 a couple of months ago and watched it go to 4 7/8 and bounce back to 9 1/4.

I am not sure how you came upon this stock. In my case, a friend of mine who does finanical analysis work in New York shared his office space with Cellular Vision. Since then he and I found out that Dillion Reed somehow did not support the stock and dropped coverage of this stock right after the initial public offering. In addition, there were some manangement problems that hampered this company's growth prospects.

However, the story is slowly chaninging. They now have many new members of its managment and Dillion Reed (the underwriter) started touting this stock again with a buy rating (as according to Barron's).

I was a business analyst at MCI for three years and can tell you that what they've got is a techonology that really works. Their stock price will be heavily dependent on CVUS' beta testing of its services in New York metro area and % of market penetration after the actual sales drive starts.

Just to give you an idea of how valuable their bandwidth lincense is: MCI paid $650M for the similar band with earlier this year. CVUS' bandwidth license is currently valued at $200M that translates to about $15 a share.

Let me know if you want to discuss further.

Yong
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