Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : International FiberCom, Inc. (NASDAQ- IFCI) -- Ignore unavailable to you. Want to Upgrade?

To: mark garner who wrote (2511)	6/21/1999 11:41:00 PM
From: Satch77	Respond to of 3541

Good recent article on IFCI. >>>Ideas & Trends Monday, June 21, 1999 Richard Hefter,Editor Riding the Broadband Wave Two weeks ago we added International Fibercom (IFCI) to our MicroCap1000 Model Portfolio, and the stock has proceeded to pay dividends. Since our "add" price of 7 1/8 the stock has climbed to 9, where it closed on Friday, buoyed by a report from Gilford Securities, which reiterated its buy recommendation with a 12-month target of $12. International Fibercom looks to ride the broadband wave - or, at least, to mix metaphors, the coattails. The Phoenix-based company provides installation, construction, consulting, design, engineering and systems integration services to owners of broadband, fiber-optic newtworks. Gilford analyst Otis Bradley said in his June 15 report that, "We believe IFCI very attractive - and actually a Strong Buy-on a 6-12 months basis." Among the reasons: Top management, specifically Joseph Kealy, chairman and CEO, and Doug Kimball, COO, have established a "very strong corporate game plan and articulate it." Further, the company benefits from the fact that outsourcing of telecommunications equipment is a $14 billion opportunity. "We have believed for decades," says Bradley, "that outsourcing is, arguably, the single most important worldwide high-tech macro trend." Another reason is the company's "excellent" numbers, says Bradley. Revenue grew 189% last year to $105 million and earnings rose 169% to 43 cents per share. "We estimate revenue of $180 million this year and as much as $360 million in 2000, and EPS of $0.60 in 1999 and $0.85 in 2000," he says. On the other hand, growth has occurred primarily through acquisition, and much more internal growth will be needed if IFCI is to meet Bradley's expectations. Also, research coverage has been very limited, though Bradley is hopeful that Oppenheimer or another major brokerage firm will begin coverage, especially as IFCI appeared at Oppenheimer's investor conference, "The Communications Food Chain," last week. Another negative that might change is the lack of any highly visible propriety high-tech capability, with IFCI recently acquiring Aerocom's wireless technology. The company's 52-week range has been a very narrow 4.9 - 9.8 band, with the high not achieved since last November. The good news is that the company is closing in again on this high. And still the P/E is just 14 times this year's EPS estimate and 10 times next year's number. Pretty cheap considering expected earnings growth is nearly 50%.<<< www.microcap1000.com/homepage/daily.html Satch