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Technology Stocks : Intermedia Communications ICIX -- Ignore unavailable to you. Want to Upgrade?

To: bookemdano9 who wrote (260)	7/25/2000 7:40:12 AM
From: bookemdano9	Respond to of 313

Paul, more opinion: I think we'll see 41 when a couple things happen. First, ICIX mgmt has to wrap up the deal for DIGX, and at a great price. Great in this regards has to be north of $120, which will put another $500 - $600 mm in ICIX's cash pots, post tax. Second, they have to tie down the potential conversions outstanding from all the preferred's and warrants. If they can guide the analysts and tell the story that the additional 24 mm shares hanging over the market's head WON'T be coming at this time, it solves a large issue. Finally, (and this is out of control of ICIX to some extent), the CLEC/DLEC/ILEC/wholesale bandwidth sector has to come back into the good graces of investors. Look at the charts of WCG, BRW, and some of the other smaller telephony players and you can see they're all pretty punky right now. If ICIX plans now, they could orchestrate a very nice PR campaign to give investors and analysts alike a solid preview of what ICIX will look like post DIGX. This guidance should include: A preview of the spotless balance sheet, shares outstanding, conversion features of everything out there, an EBITDA and EPS earnings preview, strategic focus, competitive advantage and 5 year outlook. Morgan Stanley has shown a very strong willingness to listen to the company. Bear Stearns has a compelling reason to listen and spread the gospel as well. When you see those things come together, you may see the company trade at a multiple of revenue for its CLEC operation at 2.5 to 3 times, much closer to that of BRW. If we still have only 53 mm shares out, that's easily in the $41 to $50 range... That's the long winded answer to when we'll hit $41...ICIX Mgmt, you've got your work cut out for you! Dan'o