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Non-Tech : Wit Capital - The way of the future? -- Ignore unavailable to you. Want to Upgrade?

To: DebtBomb who wrote (5686)	6/27/1999 10:31:00 AM
From: ChopChop99	Read Replies (2) \| Respond to of 16809

I'll serve as devil's advocate on the NPLS discussion... I read through the prospectus and didn't like it, but let me assure you that if the SI IPO Gang develops a consensus excitement for NPLS, I'll change my mind and beg for shares. (Er... uh... Can you UN-cancel a cancellation of a Wit CO and retain your "in the window" timestamp?) Chop gulps sheepishly Anyway: Fairly small regional long distance reseller that has to buy most of its long distance service from Sprint and compete with the big boys like AT&T, MCI, et al. as they sell it. Just now getting into DSL and counting on it as the savior to turn their company around and make it profitable. I know DSL is the hot broadband tech killer buzzword at this moment, but there's no way to know that it will be a month from now. And as far as the market goes, there's no way to know it'll be the killer punch buzzword in two days, let alone two months. (Who remembers the online broker trading frenzy and how fast it died?) As in their long distance services, they're basically gonna be a reseller of DSL and may wind up competing against the vendor that they buy from. With 8 million shares at $14-16, the offering is just a wee bit pricey for what could be a very jittery week. Very sleepy name, IMO. They owe a ton of money. The money from this offering will only be enough to carry them through the end of 99, and they plan to borrow tons more money to keep going. Very slow growth for a company that's going public. Again, they're counting on DSL to be the explosive growth catalyst that they need. They, of course, lose money. And while I'm used to that on the dot-com front, let's remember that this is not a dot-com company. In fact, refreshingly, they don't even claim to be one. A HUGE negative for me is the fact that they do not even sell electricity over the internet and apparently they don't even have plans to do so in the future.