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

To: ChopChop99 who wrote (5693)	6/27/1999 12:35:00 PM
From: Shadowed	Respond to of 16809

NPLS Cons(from SEC filing): Risks to Network Plus' business include recent and continued negative cash flow and losses; need for additional financing beginning in 2000; fluctuating quarterly results; uncertainty of market acceptance of digital subscriber line and Internet services; inability to offer services; need to manage growth; ability to sustain pricing; debt obligations; indebtedness places financial and operating restrictions; reliance on local providers; reliance on suppliers; significant amount of revenue from resale of Sprint long distance service; potential acquisitions and competition. Risks also include dependence on rights-of-way agreements; governmental regulation; dependence on billing and information systems; prompt collection of payments; maintaining pacts with Internet service providers; attracting and retaining employees; possible computer systems failures; Year 2000 compliance; existing shareholders have significant control; corporate by-laws; volatile stock and immediate dilution. NPLS Pros: DLS Biz Buzz, Underwriter, Internet connectivity sector is hot. Recent DSL industry related IPOs did well: Globespan, HSAC. P.S. I do not believe CAIS qualifies as a DSL play. IMO, they are a parts supplier to hotels who want to convert phone lines to handle analog and digital connectivity.

To: ChopChop99 who wrote (5693)	6/27/1999 12:50:00 PM
From: Shadowed	Read Replies (2) \| Respond to of 16809

I think devil advocate Chop made the best point of all about NPLS: " With 8 million shares at $14-16, the offering is just a wee bit pricey for what could be a very jittery week." I will have to think about this IPO before "I Confirm" to Wit. What really scares me is that Goldman has this nasty and greedy habit of upping the estimated range within 24 hours and then pricing a new issue a little bit higher if they can get away with it. So during the day on Tuesday Goldman will probably raise the range to $17-19 and then price Tuesday night at $20 or $21! This may be an exaggeration but something like this wouldn't surprise me. So do I want to tie up an inflated IPO issue for 60 days at Wit? Greenspan is the other wild card next week.

To: ChopChop99 who wrote (5693)	6/27/1999 6:29:00 PM
From: Praetor	Read Replies (2) \| Respond to of 16809

Ohhh, I hate to do this... But... I'm not real fond of NPLS. I know, I know, it's got the right UWs - GS, ML, and DLJ. But it just seems wrong. I've been reading over their prospectus, and I just don't like 'em. First, they're very regional - they're heavy into New England, with "satelite" networks in a few places in CA, lots out of Atlanta (I live in the Southeast, where they claim one of their major networks is, and I've never heard of them), etc. Also, this line from the Overview in their prospectus bothers me: As of May 15, 1999, we served approximately 40,000 customers representing in excess of 200,000 access lines. We had total revenue of $105.5 million in 1998 and $33.6 million in the first quarter of 1999, substantially all of which was attributable to the sale of long distance services. We commenced offering local services in September 1998 and DSL services in May 1999. (My emphasis.) They're a long distance company. Plain and simple. They started offering DSL (the Buzzword-du-jour) last month. Last Month! With revenues of $105MM, they're still losing $6MM - that's not a bad ratio, especially if they're a pure Net play. But they're not. They're selling a service that virtually everyone in the US uses (long distance), and they're not making a profit doing it. They're also planning on using almost half of the proceeds of their IPO (assuming a $15 pricing) to pay off debt. Almost $46MM of it. So while they may have the right underwriters, this deal smells an awful lot like the GreenMountain.com deal, where NPLS is counting on the buzz of the Internet and DSL to save their bacon. I'd be interested to see how NPLS does in the TopAnnuity 10-point Questionnaire, too. But I just don't like 'em. So, I guess Chop and I have weighed in, and it's sure to be a moon-shot now... Praetor