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

To: DubM who wrote (11548)	9/29/1999 9:55:00 AM
From: DubM	Read Replies (1) \| Respond to of 12468

This from the WSJ yesterday: September 28, 1999 Dow Jones Newswires 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 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.