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Technology Stocks : Broadband Wireless Access [WCII, NXLK, WCOM, satellite..] -- Ignore unavailable to you. Want to Upgrade?

To: Bernard Levy who wrote (680)	9/27/1999 10:27:00 AM
From: SteveG	Read Replies (1) \| Respond to of 1860

thanks bernard - interesting article fwiw, here are some notes from PW's Hodulik on TGNT TGNT: Adjusting numbers to reflect ISP initiatives September 27, 1999 <<TGNT3Qnumbers.doc>> KEY POINTS * We are increasing are estimates for third and fourth quarter EBITDA losses due to increased spending by the company as it executes plans to build an Internet service provider within its organization. * For the third quarter, we now expect EBITDA losses of $102 million versus earlier estimates of $91 million. Similarly, estimates for fourth quarter losses increase to $103 million from $92 million. * This ISP initiative, announced after second quarter results, will have a positive long-term impact on the company's valuation by lowering its cost of service and allowing it to provide customized, value-added IP products to its targeted customer base. * We are maintaining our revenue estimates for the third quarter but slightly trimming fourth quarter numbers. Our current third quarter estimate stands at $10.4 million while we now expect the company to report $31.5 million in revenues for the year down from roughly $34 million. * Growth in other infrastructure-based aspects of the company's roll-out, such as building access rights and on-net buildings, is expected to remain strong and demonstrate continued progress. At this early stage in the development of the company, we believe these issues must be considered with equal weighting as more traditional metrics. * We remain bullish on Teligent shares as a way to play the growth in demand for broadband connectivity and fixed wireless' ability to serve that demand. Teligent's recent price of $52 per share provides almost 35% upside to our current price of $70 per share. We maintain our Attractive rating on Teligent shares. * Risks: Adverse regulatory rulings, technological change, existence of substantial losses, continued dependence on the capital markets and increasing competition from larger, better capitalized companies.