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Technology Stocks : Rhythms NetConnections Inc. (RTHM) -- Ignore unavailable to you. Want to Upgrade?

To: aliveinsf who wrote (156)	11/11/1999 5:34:00 PM
From: Brian Cotter	Read Replies (1) \| Respond to of 378

As a preface, I am very long on Rhythms: OK, so Ms. Hapka had a rough 5 minutes at 7:20AM in Denver. She should indeed have been more prepared, but it's pretty sophomoric to say she can't run a company. She played the key role in getting this company from a thought in '97, to funding from Kleiner-Perkins, MCI, Qwest, MS, etc to 850 collocated DSL cages in 30 markets across the country. And their network is far superior to other DSL networks. Most of the complainers sit here all day posting nonsense, all the while producing nothing valuable other than some returns or losses or farfugnugen charts to talk about at the bar. And while producing nothing whatsoever, you now feel you can QB a national DSL CLEC based on five minutes. You'd soil your pants if you had her job. I think many got a little upset today because they thought it might go up again. Frankly, IMHO, if Catherine didn't interview today with "Mr. Spectator", the very same thing would have happened. Everyone's excited about 102% revenue growth......."they beat the street by 8 cents". There's no doubt that this is an impressive company with a bright future. Sales are increasing as I write and they're hiring great talent.....in fact, it's still easy hiring studs because of this currently low valuation and consequent value of stock options. Nonetheless, going from a few million to a few more million is no great jump. We're so tied to figures and statistics that we don't see the big picture........they've got a lot more selling to do, but they've built "the better mouse trap", and customers will indeed flock to Rhythms this year for sure. But to expect $50, 55, 60 so early and on so little relative growth is absurd. If you stayed in, you deserved to lose today. Most serious longs on Rhythms could see that a 50+% increase in a week (or better put, another $Billion or so in MktCap) is not justified by a few more million in sales. And that's why it dropped today. This is a quality company that made an error. But we all made a little error expecting too much too soon in the market......just because we've become a little accustomed to absurd returns doesn't mean Hapka's an idiot. This could drop a little more in the week ahead, but we'll see $100 by the end of next year at the latest......I'm betting on it.