Seems to be backing and filling on bullish light volume.
News to be looking for would be announcement of the intended faster/broader buildout of top markets (50 US and 50 foreign), hopefully at about the same time as some new revenue streams announced (to help offset EBITDA - mgmt aware of IIXC reactivity).
And though New York gov phone biz contract announcement probably not out till Dec/Jan, will almost invariably be an additional substantial revenue booster - considering that WCII is only co-bidder and at least two telcos have to be given contracts.
Further, as previously suggested, mgmt is very likely doing the requisite due diligence on unleashing whatever intrinsic value lurks within WCII (such as New Media - eg.,see MALL today).
Consider:
-EarthWeb (EWBX) has $2MM ttm revenues and has market cap of $550MM.
-GeoCities (GCTY) has ttm revs of $12MM, and has a market cap of $1.4B.
-eBay has ttm revs of $31MM and has a market cap of $6B.
-WinStar NewMedia has ttm revs of ~$45MM (including $12MM for 98Q3 alone) and a 2 year annualized (Q over Q) rev growth rate of 175% [revs in 96Q3 were ~$4MM].
Ergo - what market cap might NewMedia garner if 25% were floated publicly? (you gotta know bankers are currently chomping at the bit over this juicy carrot)
In the meantime, we are still above 14d ($28.75) 50d ($26.18) and 100d ($27.87) exponential moving averages (EMA). 200d EMA is nearby at ~29.5 MACD is still in uptrend and beginning healthy crossover above zero line. 14d OBV is still VERY bullish at 22MM shares. And 14 and 30d RSIs are also still bullish.
The current trend is still strongly UP, and though we could test 26-27 before next upmove -which would look to base above 30. Would want to see us hold ~26 on this retest, and then see a close above 35 to confirm higher lows and highs.
Fast stochastic is crossing over, and may present a buying op in this general uptrend. Since trend is still up, tech wisdom is that trading against it is not recommended. ie., use troughs as buying op, versus peaks as selling op.
geocities.com
bigcharts.com
What are your thoughts? |
