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To: Bear Down who wrote (1510)	11/29/2003 6:16:55 PM
From: afrayem onigwecher	Read Replies (1) \| Respond to of 1766

VoIP Stks Soar Again On Mkt 'Buzz' Over Indus Prospects DOW JONES NEWSWIRES By Roger Cheng Of DOW JONES NEWSWIRES NEW YORK -- Shares of companies providing phone services over the Internet soared Friday for a second trading session, driven by a buzz from positive comments on the industry. A bullish pick of voice-over Internet protocol service provider 8X8 Inc. (EGHT) by Tobin Smith, editor of ChangeWave.com, coupled with optimistic comments by Net2Phone Inc.'s (NTOP) chief executive created excitement in the sector. The buzz has heightened investors' awareness of the industry, which has long been ignored by Wall Street, said Needham & Co. analyst Vik Grover. Net2Phone's chief, Stephen Greenberg, said in a CNBC interview Wednesday that he believed voice-over IP technology is the future of calling. Smith touted 8X8 in an article published on Forbes' Web site. He said the company has a better product than better known Vonage, and added the stock could be trading at $10 to $12 in six months. 8X8 recently traded at $7.65, up 90 cents, or 13.3%, and Net2Phone added 6.9% to $6.33. Other big movers include Vocaltec Communicatrions Ltd. (VOCL), which surged 37% to $6.16; and DeltaThree Inc. (DDDC), which advanced 11.3% to $4.22. Vonage isn't publicly traded. Needham's Grover cited Net2Phone's successful public offering and Vonage's financing this week as proof investors are starting to see opportunities. The technology offers the opportunity for new features to be added on to phone services, while simultaneously reducing the cost, the analyst said. Grover said DeltaThree and Net2Phone are trading at a substantial premium, noting the stocks tend to get way ahead or behind themselves. "It's fair to say these stocks have gotten ahead of themselves," he said. In a research note Wednesday, Grover added that while he sees opportunity in this sector, he would recommend investing in more stable companies with exposure to this technology. Among his picks were Covad Communications Group Inc. (COVD), which plans a launch of its own voice-over IP service in the third quarter next year, Level 3 Communications Inc. (LVLT), AT&T Corp. (T), Primus Telecommunications Group Inc. (PRTL), and Time Warner Telecom Inc. (TWTC). The analyst has a strong buy rating on Covad and Time Warner Telecom, and a buy rating on Level 3, AT&T and Primus. Grover doesn't own shares in any of the companies he covers. Needham was an underwriter in Net2Phone's recent offering, but the firm doesn't have conflicts with the other companies. -By Roger Cheng, Dow Jones Newswires; 201-938-5393; roger.cheng@dowjones.com URL for this article: online.wsj.com Updated November 28, 2003 12:41 p.m.