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

To: SteveG who wrote (778)	10/11/1999 2:23:00 AM
From: SteveG	Read Replies (1) \| Respond to of 1860

some CLEC previews from DBAB: WinStar: Nasdaq-CII-$39.06-STRONG BUY 52-Week Range: $64-$10 12-Month price objective: $69/share (based on our DCF, 10x-terminating multiple, 20% equity discount rate) Equity market capitalization: $3.6 billion Comments: WinStar fell by more than 20% in the final week of 3Q99 after the company released its first iteration of year-2000 guidance, which was significantly below Street consensus on the top line, clouding what was otherwise a strong quarter for the company strategically and operationally. None of the events that transpired last week change the fundamental outlook in any way, we believe, and we look forward to the continued expansion of the data story at WinStar. In September, the company offered the first glimpse of its new equipment testing facility in Washington, D.C., and gave analysts a hint of the new services and equipment that could hit the WinStar network soon. Among other products that caught our attention, high-speed point-to-multipoint radios (180 Mbps-like) could soon allow WinStar to provision service at an expense of less than $100 per T-1 connection, and wireless LAN technology is being explored to drive demand for broadband last-mile connections among the estimated 80% of small businesses without a LAN. Teligent: Nasdaq-TGNT-$49.69-STRONG BUY 52-Week Range: $76-$19 12-Month price objective: $64/share (based on our DCF, 10x-terminating multiple, 20% equity discount rate) Equity market capitalization: $3.4 billion Comments: Teligent turned the corner last quarter, the first quarter in which real meaning can be derived from some of the operating metrics for the company. The key takeaway was the continued deployment of network into which to sell the Teligent service suite. After announcing a shared-bandwidth data offering targeting the small business segment craving low-cost "medium speed" access, Teligent announced the development of its own "IP platform" to bring ISP services in house and reap the incremental margin of facilities-based services. Management cited four reasons for getting into the facilities-based ISP game, including cost savings (up to $100 million over five years), tighter network control, synergies between the voice and data networks, and the flexibility as a facilities-based backbone provider to roll out new services. We believe the announcement underscores the future direction and real value-added area of the fixed-wireless game: flexible, economic data connectivity. Advanced Radio Telecom: Nasdaq-$12.63-STRONG BUY 52-Week Range: $17-$2 12-Month price objective: $21/share (based on our 10-year DCF, 10x-terminating multiple, 20% equity discount rate) Equity market capitalization: $0.8 billion Comments: ART closed on its $251 million strategic investment, led by Qwest Communications, following a successful shareholder vote on September 8. Also in September, ART launched its fourth commercial market, San Jose, after showcasing the new 100MB consecutive point-to-point (ring) network architecture from Triton Systems. Our one piece of contention so far is that we believe management could be more vocal in support of its story. We do expect to hear from management regarding specific growth expectations soon. We also believe that further financing in the form of a vendor credit facility may be in the works (the most obvious candidate would be Cisco, which is providing much of the network infrastructure), which could be holding up management's guidance. Nevertheless, we expect ART will progress from a regional player to a nationwide ISP in 2000.