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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Crossy who wrote (702)	12/16/2002 5:18:41 PM
From: Crossy	Read Replies (1) \| Respond to of 23958

re: MPOW.OB (Mpower Communications) @ $0.20 this is a CLEC/DLEC operation offering SDSL and T1 products to business customers Company recently came out of Chapter 11 elminated 90% of debt and got rid off Preferred stock in the process. 60m common shares are out. Recently Mpower has redeemed all the outstanding longterm debt through open market purchases at a fraction of face value. Operating results have been steadily improving. While EBITDA is still negative, they now feature improved Gross Margins (around 40% - quite high for a DSL CLEC). Discretionary item SG&A looks like further containable. Book value after debt repurachse around $1.50 per share. Price/Book amounts to approx. 0.15. The CEO has implied either a financing or a "strategic transaction" at the time of debt repurchase. I do know this is risky but Gross Margins aren't any worse than with ILECs here. They would add immediate value to any mid to large size CLEC like CTCO, ALGX, TWTC, MCLD etc.. I did some DD and uncovered that those notes had some very restrictive covenants precluding expansion, new financing or a merger. best rgrds CROSSY