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

To: SteveG who wrote (702)	9/29/1999 11:39:00 AM
From: proud dad	Respond to of 1860

ADSP-Good buy?

To: SteveG who wrote (702)	9/29/1999 12:01:00 PM
From: SteveG	Read Replies (1) \| Respond to of 1860

Legg Mason: Comments on Weakness - Degree of weakness in WCII shares is unwarranted by fundamentals, in our opinion - We expect WCII to meet or exceed our 3Q99 and 4Q99 projections of $155 million and $138 million in revenue and $73 million and $59 mullion EBITDA loss, respectively. - We have long argued that growth for growth's sake at telecom companies is a trap and thus view WCII's pursuit of more modest, but higher-margin, revenue growth as a reasonable approach. - Our 2000 revenue loss estimate has come down from $760 million to $675 million, while our EBITDA loss estimate has remained relatively unchanged at $159 million due to more aggressive gross margin assumptions (exiting the year at 50,5% versus our previous estimate of 47.1%) - Despite these revisions, we believe the long-term investment case for broadband fixed wireless, which is predicated on the technology's ability to economically deliver high-capacity last mile connections to a broad addressable market and its complementary nature with fiber-based local networks, remains absolutely intact. - While WCII shares are likely to remain volatile in the near term, we believe the punishing 22% fall in yesterday's trading session more than reflects any short-run concerns we have on a fundamental level and suggest patient, risk-tolerant investors use the opportunity to add to positions. -Maintain Outperform/Speculative risk rating and $60 target.