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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: swisstrader who wrote (16857)	9/29/1999 4:45:00 AM
From: swisstrader	Read Replies (1) \| Respond to of 108040

Kim...good morning...thoughts on WCII today...in the business of internet broadband comm and wireless fiber...got hammered yesterday (down 22%) on an analyst (FBR) cutting estimates and seems way overblown...a) FBR is viewed as second tier (at best), b) FBR still rates as a buy and kept their $75 price target for the yr, c) Goldman (Ken Hoexter) still rates as a buy and has not revised ests, d) even the FBR analyst was shocked that it sold off as much as this...thoughts? Winstar Down 13%; Analyst Cuts 2000 Revenue View By Johnathan Burns NEW YORK -- Shares of Winstar Communications Inc. (WCII) dropped 14% in a torrent of trading Tuesday after one analyst cut his 2000 revenue estimate for the company, triggering rumors that the company was trimming its forecast. Friedman, Billings, Ramsey & Co. analyst Riyad Said cut his 2000 revenue estimate to $652 million from $773 million, citing Winstar's tighter focus on the most profitable customers. According to Said's note, the changes were based on guidance from the company. Winstar officials did not immediately respond to requests for comment. Said said he thinks the New York local phone company's third quarter is on track. He reiterated his buy rating, and said the emphasis on the most desirable customers will lead to margin improvement. The report appeared to fuel rumors that Winstar is expecting revenue in 2000 to be at the low end of analysts' estimates, if not below them. Ken Hoexter, analyst with Goldman Sachs, said the market was overreacting and Goldman had not revised its rating on Winstar. "Operations at Winstar continue to perform very strongly and the network continues to be deployed," he said. "We continue to believe at these levels the stock looks very attractive." Winstar recently traded down 8 5/16, or 15.4%, to 45 11/16. More than 3.8 million shares swapped hands, compared to average daily volume of 1 million shares. Said, the Friedman analyst, said he wasn't expecting Winstar's stock price to drop as drastically as it did. "I expected it to be down about 4%," he said. "I was a little surprised." He based his revised revenue estimates on discussions with company management and the view of the overall market. "It was based on our discussions," he said. "I think strategically what they are doing makes sense." Winstar's third quarter and fourth quarter are fine, Said stated. He said his low-end estimate for the company's fiscal 2000 revenue is around $600 million, and he expects other analysts to similarly revise their views. In a statement, Winstar Chief Executive William Rouhana Jr. said little about the company's future revenue. "Although I cannot comment on stock price movements, I can tell you we are on track to meet Wall Street's estimates for the quarter," he said. "Our business is strong and we have great momentum." For the third quarter, analysts expect Winstar to lose $3.42 a share, according to a survey by First Call/Thomson Financial. Analysts expect the company to lose $3.23 a share for the fourth quarter. Winstar was recently trading at 44 1/4, down 9 3/4, or 18.1%, on volume of 5.8 million shares. -Johnathan Burns, Dow Jones Newswires, 201-938-2020 WinStar Communications, Inc. is a pioneer in providing business customers with broadband communications services, including local and long distance phone service, as well as high-speed Internet access, data and information services. WinStar provides these Wireless Fiber(SM) services in more than 30 U.S. markets over its own local broadband networks, using its licenses in the 28 and 38 GHz spectrum, which are connected to the company's nationwide fiber-optic network. In addition, the company offers Wireless Fiber services in two markets outside the U.S. In the past year, WinStar has become one of the largest Internet companies in the U.S. Recently, the company announced a destination Web site for businesses, Office.com(SM), a service from WinStar.