Kevin. Did you see this initiation of coverage on (NASC) June 4th...?
FBR Initiates Coverage of Network Access Solutions; Analyst Issues
Buy Rating and Target Share Price of $35.00
PR Newswire - June 04, 1999 13:08
FBR Publishes Research on Latest DSL Broadband Service Provider to Go Public
WASHINGTON, June 4 /PRNewswire/ -- The following is being issued by Friedman, Billings, Ramsey &
Co., Inc., a member of the National Association of Securities Dealers, Inc., CRD# 25027:
Friedman, Billings, Ramsey Group, Inc. (NYSE: FBG) announced today that its principal broker-dealer,
Friedman, Billings, Ramsey & Co., Inc. (FBR) initiated coverage with a "Buy" rating on Network Access
Solutions Corp. (Nasdaq: NASC) with a price target of $35.00 per share. The Company, which went public
today, is a broadband local service provider utilizing digital subscriber line (DSL) technology and is known
for its branded service called CuNet(TM) (pronounced "Copper Net").
"Network Access Solutions is well positioned to address the insatiable demand for bandwidth," said FBR
Communications analyst, Riyad M. Said. "At its IPO price, the Company's enterprise value is about $440
million, a discount of more than 85% to its DSL peers, representing a very attractive relative valuation. We
believe this valuation gap will narrow significantly as the Company executes its business plan over the
coming months, offering investors significant upside potential."
The research comment, published today, outlines four key investment merits for NAS:
-- Demand for broadband local capacity will experience explosive growth over the next decade
-- Strong end-customer focus, equating to higher revenue and margins
-- A total network solution, which translates into stronger customer relationships and retention
-- A deep footprint in the Bell Atlantic region provides early mover advantage in the most densely populated
region in the United States and the largest communications market in the world
Friedman, Billings, Ramsey Group, Inc. is a publicly traded, full-service investment banking and asset
management firm. Asset management operations include proprietary investment partnerships, venture capital
and private equity partnerships, and the FBR family of mutual funds. Its wholly owned subsidiary, Friedman
Billings Ramsey & Co., Inc. (FBR) makes a market in more than 400 securities and provides research
coverage on 430 publicly traded companies. fbr.com is a division of FBR Investment Services, Inc., a
wholly owned subsidiary of Friedman Billings Ramsey Group, Inc., that will provide access, as a selling
group member, to IPOs underwritten by FBR and others.
Friedman, Billings, Ramsey & Co., Inc. makes a market in the common shares of Network Access
Solutions. FBR Technology Ventures LP owns 3,457,500 shares of common stock (or 7.8% after the IPO),
which is also subject to a 180-day lock-up sale restriction from the effective IPO date of 6/4/99. As a result,
this analyst through his LP holding has an ownership interest in this security.
SOURCE Friedman, Billings, Ramsey Group, Inc.
/CONTACT: Melanie Nelson of FBR, 703-312-9623/
(FBG NASC)
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