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Technology Stocks : e.spire Communications (ESPI) -- Ignore unavailable to you. Want to Upgrade?

To: greatswamie who wrote (450)	5/15/2000 8:52:00 PM
From: greatswamie	Respond to of 471

Been accumulating ITXC for the past month, but took the time to review the numbers on ESPI today. They are not bad - in fact, in some areas they were pleasing. Consider this, Adelphia Business Solutions, another CLEC (ABIZ) recently announced their qtr as well. They had $69 Million in revenues on 412K access lines with SG&A expense of 58 Million. Net cash flow in operating activities came in a -69 Million. Yet their stock sports a market cap of over 2 Billion. ESPI, for this QTR, has revenues of over 62 Million on less than 1/2 the access lines of ABIZ (181K). SG&A expense came in at 53 Million. Net cash flow in operating activities came in at -33 Million. ESPI market cap? 200 Million. Either ABIZ is seriously overvalued or ESPI is serious undervalued. I bought a large chuck of this stock because I believed that they would be bought out. Their network and cybergate is still worth over $20 IMO and I am certain MSDW has been busy working on a plan to demonstrate that shortly. EBITDA is THE key (and to a certain extent funding for 2001) and the CEO made some statements that suggest they will significantly move closer the EBITDA in the next qtr. Bottom line: This stock has no business trading under $15 a share. I think I will break down and buy a few more shares in the AM. When a buy out comes, and it will come at some point (IMO) those buying now will be pleased. In the meantime, we wait for the brutal beating on CLEC's in general to reverse its trend. Good luck! GS>