Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : HIGH SPEED ACCESS {HSAC} -- Ignore unavailable to you. Want to Upgrade?

To: LowtherAcademy who wrote (937)	11/4/2000 1:10:45 PM
From: LowtherAcademy	Read Replies (2) \| Respond to of 963

Here's a except from the Sec docs filed on Oct 25th, 2000. Also Paul Allen's recent investment and attendant warrant options are exercisable at $5.00. Interesting valuation: Research Analyst Estimates. Lehman Brothers compiled and analyzed current third party research analyst estimates for HSA's future share price from various investment banks published reports. Specifically, Lehman Brothers analyzed the reports from CIBC World Markets dated August 10, 2000, JP Morgan dated August 10, 2000 and Bank of America dated August 10, 2000. After eliminating one report as an outlier, the research estimates ranged from $16.00 to $17.00 and were discounted to October 1, 2000 at an assumed weighted average cost of capital of 22.5%. The resulting implied share price for HSA ranges from $15.21 to $16.16. Lehman Brothers also notes that since the research was published, the Nasdaq has fallen 15.6%, the comparable universe has fallen 22.1% and HSA has fallen 65.8%. Discounted Cash Flow Analysis. The discounted cash flow analysis provides a net present valuation of management projections of the projected after-tax unlevered free cash flows (defined as operating cash flow available after working capital, capital spending, tax and other operating requirements) based upon HSA's financial projections. Assuming a free cash flow growth rate of 4.0% and 6.0%, a weighted average cost of capital of 22.5% and a private to public market discount of 30%, the analysis discounted to the date thereof indicates an implied per share valuation for HSA of $6.46 - $6.85. Lehman Brothers is an internationally recognized investment banking firm and, as part of its investment banking services, is regularly engaged in the valuation of businesses and securities in connection with mergers, acquisitions, underwritings, sales and distributions of listed an unlisted securities, private placements and for estate, corporate and other purposes. HSA's Board of Directors selected Lehman Brothers because of its expertise, reputation and familiarity with HSA and the telecommunications industry generally and because its investment banking professionals have substantial experience in transactions comparable to this transaction.