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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: DubM who wrote (11547)	9/29/1999 9:47:00 AM
From: DubM	Read Replies (1) \| Respond to of 12468

This article from Bloomberg: New York, Sept. 28 (Bloomberg) -- WinStar Communications Inc. shares fell 22 percent on concern that the wireless-phone and data-services provider's revenue in 2000 may be lower than expected. WinStar, which provides local and long-distance phone service and high-speed Internet access using dinner-plate-sized wireless antennas, fell 11 13/16 to 42 3/16 in trading of 9.81 million shares, more than nine times the three-month daily average. Analyst Riyad Said of Friedman, Billings, Ramsey & Co. said the company guided him to lower his estimate for 2000 revenue to about $653 million from about $773 million. New York-based WinStar couldn't immediately be reached to comment. ``The stock took two hits today. The first was the initial reaction to (Said's) report, and the second when there was the realization that the report was based on guidance from management,' said analyst Ryon Acey at Scott & Stringfellow Inc. Acey, who rates the stock ``long-term buy,' said it isn't clear whether the lower revenue also will lead to lower operating cash flow. He believes that investors are assuming a worst-case scenario, given the stock's decline. ``If the revenue reduction is related to the fact that they are getting out of some businesses and focusing on higher-margin customers, then cash flow won't go down as much. If not, it will also take a hit,' he said. Said also lowered his estimate for WinStar's fourth-quarter gross margin to 35 percent and raised his estimate for its third- quarter cash-flow loss to $74.2 million from $72.8 million. Gross margin is the percentage of revenue that remains after deducting production costs. Cash flow -- or earnings before interest, taxes, depreciation and amortization -- is used by many investors to evaluate indebted companies because it focuses on the performance of the underlying business. Said reiterated his rating of ``buy' for WinStar stock and expects it to rise to 75 within the next 12 months. Sep/28/1999 16:33 For more stories from Bloomberg News, click here. (C) Copyright 1999 Bloomberg L.P.