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Technology Stocks : Winstar Comm. (WCII)

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To: gabor boda who wrote (730)2/21/1997 11:15:00 AM
From: Steven Bowen   of 12468
 
But there are thousands of companies out there that are losing money that have similar valuations. There are dozens of small telecom companies out there that are losing money as fast as Winstar is as they all rush to build an infrastructure. Look at Teleport, ICG, Brooks Fiber, McLeod, GST. These are just a few Telecoms of the top of my head that are losing tons of money. But they aren't getting hammered like Winstar. The market expects these companies to lose money as they build up. AT&T and MCI probably lost money for years before turning profittable. Current stock price should be reflective of the expected future cash flow. Winstars not getting a fair shake for some reason. I don't think the analysts are crazy (maybe crooked, not crazy). One percent of a $350B market sure seems feasible. Thats $3.5B revenue a year in a few years. Thats not getting reflected in current prices (again, of course, just my opinion, and what should I know, I've been stupid enough to hold this *@!#$($* stock).
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