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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: bananawind who wrote (718)	8/10/1999 6:42:00 PM
From: Ibexx	Respond to of 13582

A Prudential report on Clearnet (CDMA carrier, in excerpts)issued today before earnings release: ___ . Why a Strong Buy/SBI rating on Clearnet: * Two networks allow Clearnet to segment the market and achieve cost efficiencies * In our opinion, management has proven it can operate, after the most successful PCS launch in North America * Partners bring the company leverage, including technical and operational expertise, access to capital, and access to distribution * Canadian wireless should be on the rebound with improved growth, the introduction of calling party pays, and potentially an easing of foreign ownership rules * Compelling valuation - the cheapest wireless stock we follow Valuation: Buy One, Get One Free. Despite the strong (albeit short) operating performance of Clearnet, it remains one of the cheapest wireless stocks we track. We estimate that Clearnet's combined wireless business is trading at $41 per POP, valuing its Mike network at half that of Nextel, which trades at $78 per POP (near its U.S comparables of $82 per POP). We note, however, that Canadian wireless stocks have traditionally traded at a 20% discount to U.S. per POP averages, likely as a result of lower penetration among other things. Based on a discounted cash flow analysis, our 12-month price objective for Clearnet is US$20/share..... ____ Ibexx