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Technology Stocks : KSAT - KSAT Satellite Networks Inc. -- Ignore unavailable to you. Want to Upgrade?

To: NAUGHTY NOTES who wrote (66)	2/2/2001 2:13:10 AM
From: Jim Bishop	Respond to of 73

Also this from StockHouse, Stone report. stockhouse.com Chinese Internet Expansion Could Connect Gilat to Success By Mark Stone - Syndicated Columnist Wednesday, January 30, 12:30 PM PST Miami, FL, January 30 /SHfn/ -- It's the time of year when telecom-based companies strut their stuff at trade shows and investment conferences. Gilat Satellite Networks [GILTF], an Israeli-based telecom solution provider, may be one worth watching. It specializes in VSAT satellite network technology, and may provide a strong trading opportunity this season. Gilat offers enterprise networking, rural telephony solutions and markets-interactive broadband data services. StarBand Communications [STRB] - Gilat's joint venture with Microsoft [MSFT], EchoStar [DISH] and ING Furman Selz Investments - may play an integral role in the company's next project. Gilat is expanding into China to offer broadband Internet service in conjunction with KSAT Satellite Networks [V.KSA]. This is exciting news for investors. There are several reasons to like this company. Gilat carries a book value of $27, and its shares recently traded in the $38 to $40 range. Its price-to-book ratio is 1.4. Unlike others in the business, Gilat carries a 2 times price-to-sales ratio. There are only 23 million shares outstanding. About a year ago, during the telecom frenzy, Gilat traded at nearly five times its current price. Many investors snapped up the depressed shares earlier this month, some hoping to cash in on the StarBand IPO, which was filed last autumn, but hasn't materialized. With the return of a Bush to the White House, it appears business relationships with China might heat up. In late October, the official Chinese news service reported that the Chinese government will spend several million dollars to improve its Internet services using Gilat's satellite communications technology. It also said Shanghai will be establishing a VSAT application and research center with Gilat. Gilat holds a 37% ownership in KSAT, which will be manufacturing, selling and delivering Gilat's satellite communications technology. Gilat and KSAT will be providing two-way, high-speed Internet access through satellites throughout targeted Chinese cities. Dr. Steve Wan, Stanford University Masters and PhD, pioneered the first venture capital fund in China in the 1980s and has worked closely with Gilat for the past eight years. He is also a major shareholder in KSAT and CEO of a private company that is affiliated with China Telecom. Dr. Wan says part of the major launch into China is likely to involve StarBand in an integral role. He is bullish about the Chinese Internet expansion and how KSAT and Gilat would bring broadband IP services into a country where even dial-up is out of the question. Wan says satellite dishes will be set up in apartment complexes so residents can share broadband services for as little as $12 to $17 a month. The KSAT/Gilat alliance may be off and running as early as this summer. Dr. Wan says discussions are underway with a Beijing-based telecom company that has finished wiring 500,000 homes. Dr. Wan hinted that some of the nine scheduled projects are beginning to look good. "In the first quarter of this year, we achieved increasing numbers and dollar values in terms of sales." Technically speaking, Gilat appears to be closing out the month on a strong note. Over the past four weeks, it has nearly doubled in price and appears poised to rally higher in February. KSAT has put in a similar performance, having tripled off a mid-December low. Both companies should perform well during the January to February telecom rush. If KSAT reports Chinese expansion plans in the near future, the companies should reap the rewards in a much shorter time frame. Copyright © 2001 by The Mark Stone Report. The Mark Stone Report seeks to identify leading stocks in momentum sectors with near- and intermediate-term potential. This is not a solicitation or offer to buy or sell securities mentioned herein. No recommendations are made to buy or sell the securities mentioned herein. Trading in securities may not be suitable for all individuals and involves the risk of all or part of your investment. Consult your broker or other professional to determine your suitability. Information included in this article, while considered to be accurate and reliable, cannot be guaranteed as such.