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Technology Stocks : Leap Wireless International (LWIN) -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (1822)	3/29/2002 12:58:09 AM
From: Jon Koplik	Respond to of 2737

Text of BusinessWeek -- Leap sucks as per Wall Street expert ... article. businessweek.com (I am posting the text here in case the link expires at some point). ********************************* FEBRUARY 12, 2002 WORD ON THE STREET CS First Boston Cuts Leap Wireless to 'Hold' Analyst Cynthia Motz doesn't think the wireless carrier will hit its 2002 guidance Credit Suisse First Boston downgraded Leap Wireless (LWIN ) to hold from buy. On Monday the company posted a $2.17 fourth-quarter loss (including a gain) vs. a $3.82 loss. Analyst Cynthia Motz says its handset subsidy costs continue to rise higher than her forecast -- making it appear that Leap's strong net subscriber addition numbers may be resulting from aggressive handset promotions. Motz continues to believe the company's subscriber base churn will be a volatile metric. She notes the pressure on the wireless sector over the past couple of months, and she doesn't believe Leap Wireless will acheive 2002 guidance of a $75 million EBITDA loss; instead, Motz sees a $235.2 million EBITDA loss. Finally, she says the company's debt and equity are volitile. Motz widened her $15.47 loss 2002 estimate to a $20.20 loss. Copyright 2002 , by The McGraw-Hill Companies Inc. All rights reserved.