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Technology Stocks : PSIX up 26.5%, Takeover(?) -- Ignore unavailable to you. Want to Upgrade?

To: M. Charles Swope who wrote (4989)	9/13/2000 3:05:51 AM
From: Curtis Gruber	Respond to of 5650

MCS, thanks for the info. Here is the link: insidertrading.com PSINet Inc. (Nasdaq: PSIX) $15.50 This global business Internet service provider is at the crossroads. It largely completed its ambitious acquisition strategy, purchasing numerous companies around the globe. The focus is now shifting to integrating those acquisitions and driving PSINet to profitability. Based on management's guidance given during the second-quarter conference call held in August, the “Internet super carrier” should deliver strong results in the profitability department in 2000, becoming EBITDA neutral to positive. Considering that the company was on track to post EBITDA losses of more than $54 million this year, reaching this milestone promises to be a major undertaking. That said, management has several means to achieve their goals. The acquisition of Metamor Worldwide closed this summer enables PSINet to complement its advanced web hosting services (currently in very high demand) with the capability to develop and host cutting-edge front- and back-office applications. Advanced web hosting services carry significantly higher gross margins than traditional web hosting offerings. Moreover, PSINet is on track to spin off its retail consumer business Inter.net by March 2001, which should yield significant cost savings for the rest of PSINet. According to CFO Larry Hyatt, this division accounted for as much as 40% of the total EBITDA loss in the second quarter alone. Recent insider buying could be a testament to the company's ability to deliver on its promises. During the period from August 10 to August 24, two of PSINet's insiders purchased 55,000 shares of the company at an average price of $16.63 for a cumulative investment of more than $900,000.