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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?

To: Nick who wrote (4220)	6/21/1999 12:46:00 AM
From: BIG INVESTOR	Read Replies (2) \| Respond to of 6846

___________ INTERNET STOCK NEWS (TM) internetstocknews.com Insight For The Intelligent Internet Investor June 18, 1999 ___________________________________________________________________________ Table of Contents: 1. ISN Updates 2. Internet Stock Outlook 3. ISP's Quest For Leased Access: A Must Read! 4. ISN Events ___________________________________________________________________________ 1. ISN UPDATES By Chris Agarwal Ready to make that next killing on an Internet stock trade? Better be careful. Our suspicion is that the markets have been volatile because of a reluctance for institutional investors to dive back into the market. This past week, however, we saw large gains in the Internet sectors as well as in the Nasdaq composite as a whole. We simply attribute this to a good amount of retail and institutional investors buying back into these stocks before the end of this month when the Federal Reserve may announce an increase in interest rates. We predict a 25 basis point increase with no large reaction by the markets. This increase has already been discounted in the market indices by investors and we predict that the reaction to a 25 basis point increase will be similar to the reaction when the Fed increased rates in March of 1997: Nada. So where do we go from here? Volume is still fairly light and we're not sure we will see a confirmation rally any time soon. However, after Alan Greenspan makes a decision regarding interest rates, we expect a good rally. We will be watching several stocks closely. We have recently taken an additional position in Starnet Communications (OTC BB: SNMM). We feel that this stock that we feel will be our largest point gainer in 1999. This company will report earnings some time in July and expects a Nasdaq National Market listing to be announced within 45 days. When a company goes to the Nasdaq NMS, a little helping hand comes along called institutional investment. Since Starnet is a leader in its sector and is already profitable, we expect a few analysts to get off their conservative butts and consider the online gaming industry for a change. Recently this stock has formed a base pattern and today we have seen some selling. Next week, we will be visiting the Online Gaming Expo in Vancouver which happens to be sponsored by Starnet. Starnet is giving tours of its office to everyone at the gaming expo and, if all goes as planned, we may see a run-up in the stock price as early as next week and continuing into the week after thousands of investors are introduced to this CMGI of the online gaming industry. We expect a $1 billion market cap to be placed on any leading company within the various Internet sectors that is traded on the Nasdaq National Market. As Starnet trades at around a $300 million market cap with the stock price around $12 per share, a $1 billion market cap would imply a $40 share price or a 233% upside for their stock price. We started following Starnet in December of 1998 at $1.50 and are still very bullish on this company. Other stocks that we will concentrate on in anticipation of a rally in July are CMGI, which now trades at a reasonable Price-to-Earnings Ratio which still undervalues the potential value of their holdings, DoubleClick, Excite@Home, and Inktomi. Just like Starnet, these are leaders within their sectors. When the markets heat up, these stocks light on fire. Others which may see a boost in July are Lycos, E*Trade, and the recent Latin ISP IPO, StarMedia. As for our ISN Microcap Internet stocks, we will be watching mPhase Technologies (OTC BB: XDSL) over the next few weeks. mPhase recently performed a private placement offering and we would expect the company to seek a Nasdaq small cap or national market listing in the near future. The company recently received coverage initiation by Investec Ernst & Company who stated a possible comparable valuation at $11 per share this past week. We hold a position in this company and expect even more institutional coverage when the company's stock starts trading on the Nasdaq exchange. Check out the company's institutional coverage below: biz.yahoo.com We will also be watching Information-Highway.com (OTC BB: IHWY) over the next month. The company has experienced quite a hit in its stock price as ISP's have become out of favor in the short term. Stocks such as AOL, Mindspring, and Earthlink have come way off their highs. However, this company is performing a private placement offering and, with a cash infusion, we may start to see some big news out of the company. Another company that has made headway in working towards a NASDAQ listing