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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: gruetz who wrote (11948)	5/26/2000 12:43:00 PM
From: Lane3	Respond to of 12468

Upstart Telecom Stocks Bounce, But Investors Seen Leery By JANET WHITMAN <snip> 'Stunningly Cheap' Valuations Considering the enormous gains among upstart telecom companies in the first quarter, the selloff isn't surprising. What is surprising, however, is its magnitude, said Bauer. "Valuations are stunningly cheap," he said. Teligent Inc. (TGNT) is trading at an 80% discount its break-up value, while Winstar Communications Inc. (WCII) is at a 72% discount and Nextlink at a 65% markdown, he said. On average, such competitive local exchange carriers, known as CLECs, are trading at more than a 50% discount to their private market value, said Thomas Weisel Partners analyst Peter DeCaprio. The sector hasn't seen those kinds of discounts since late 1997 or early 1998, he said, adding, "Historically, they trade at about 20%. When things got really frothy, maybe at the most they were 10%." <snip>