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Technology Stocks : Broadwing Inc. -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (281)	2/2/2005 11:49:53 AM
From: Jeff Jordan	Respond to of 4245

Bigger isn't better? Then why all the merger activity? Lot's of profits sloshing around the world. NOT ENOUGH GOOD IDEAS!!!!!! My dad used to tell me this joke about a Texas watermelon grower/salesman. If I can remember, something like this: It costs him $2 a melon to grow and ship them to Oklahoma where he is selling them for $2. Some Okie tells him he loves his melons but he isn't making any money. The Texan agrees and says your right! I got to get a bigger truck!<g> Size matters....cash flow matters.....what you do with it matters! Corvis wasted too much money on R&D and nothing has come of it yet. BWNG will improve profit margin once they fill their pipe w/ customers.....bigger truck not needed! I'm a small business man....I can't (won't) afford to do work w/o profit......I definitely don't need the experience. However, my past experience is what makes me more profitable than I ever was in the past....and customers don't mind paying more because of the product! Happy customers, baby! This also allows me to give something extra to every customer(freebee's)....and I do. I give lots of good will! Ask any drug dealer will tell you....get-em hooked on the product and you have a customer for life!<g> Best, Jeff

To: The Ox who wrote (281)	2/2/2005 12:24:32 PM
From: tech101	Read Replies (3) \| Respond to of 4245

Broadwing is the only company that was converted from equipment to a service company less than a year ago. It takes time and money to cut costs and ramp up revenue. The SG&A costs are indeed too high, which is the problem and the challenge, too, but that also means there are rooms to improve. If a regular Joe knows where the problems are, it’s not hard for Huber to figure out. Without the purchase of Focal, BWNG could have been CFP already. If the Focal had been financed by all cash or all stock at the beginning when CORV was about 2, rather than PIPE, BWNG could be kept at 3-4 (pre split) now. Yes, Huber makes mistakes by ego or plain stupidity. But who doesn't? Many of us agree that Broadwing has: 1. The most advanced, most efficient, easiest to deploy/provision all-optical national network. Corvis/Broadwing has been touting this for 4-5 years years. We have so far seen no serious challenge to their claim. 2. About the highest ratio of revenue/employee (1600 workers assuming $820-850 m revenue) 3. Strongest balance sheet with plenty of cash and lowest debts in the industry 4. Increasing revenue with 36% of Broadwing’s revenue coming from carrier’s carrier business and about 60% revenue coming from "customers on the enterprise side" (11600 plus 4000 business customers acquired through Focal acquisition). What’s is the opportunity here?