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Technology Stocks : DSL.net (DSLN) -- Ignore unavailable to you. Want to Upgrade?

To: Bill who wrote (98)	11/3/1999 6:04:00 PM
From: cdtejuan	Read Replies (1) \| Respond to of 169

FYI: DSL.net soars on positive comments By Deborah Adamson, CBS MarketWatch Last Update: 5:20 PM ET Nov 3, 1999 NewsWatch NEW HAVEN, Conn. (CBS.MW) -- After barely a month as a public company, shares of DSL.net shares soared again on Wednesday as positive comments from analysts propelled the stock higher. DSL.net, which uses digital subscriber line technology to enable high-speed Internet connections, rose 4 9/16, or 29 percent, to 20 1/8 on volume of 11.6 million shares, more than five times its daily average for the last 50 days. DSL.net (DSLN: news, msgs) rose 69 percent on Tuesday to 15 9/16. "They're off to a nice start," said Bill Garrahan, an analyst at Lehman Bros., who initiated coverage on the company Tuesday with a "buy" rating. Lehman Bros. was an underwriter for DSL.net's initial public offering. He likes the company because of its growing niche in the small business market. DSL.net helps small companies that still use dial-up Internet services -- which tap the regular phone line to get online -- move to high-speed access. The company also plans to offer Internet access direct to consumers, in addition to providing high-speed connections. Garrahan also said that DSL.net's marketing deal with Staples to sell its service through the office supplies retailer's stores will help its business. Staples (SPLS: news, msgs) invested $6.1 million in DSL.net. The New Haven, Conn.-based company also attracted Microsoft (MSFT: news, msgs) as an investor and marketing partner. The software giant has put $15 million in the company and agreed to cross-sell a package that bundles DSL.net's services and Microsoft's MSN portal. Deutsche Banc Alex. Brown, lead underwriter for the company's IPO, and Ferris Baker Watts also began coverage on the company with a "buy" and "outperform" ratings. respectively. On Monday, DSL.net reported a net loss of $5.6 million for the third quarter, or 66 cents a share. There's no year-ago comparison. However, the company lost $16.8 million, or $2.45, in the second quarter. Revenue for the third quarter was $317,492, up from $135,985 in the prior quarter. DSL.net went public on Oct. 12 at $7.50 a share.