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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: Steven Bowen who wrote (3697)	2/4/1998 11:18:00 AM
From: Brian Coakley	Respond to of 12468

Steven, Thanks for the thoughts. I agree on the state of CVUS as an ongoing concern, but do believe what they own is worth more than $7/sh. All, sorry about the CVUS talk (although it's somewhat pertinent). Regards, Brian

To: Steven Bowen who wrote (3697)	2/4/1998 12:57:00 PM
From: Bernard Levy	Respond to of 12468

<OFF TOPIC> Dear Steven: Regarding CVUS, the LMDS auction, etc. a) I agree that CVUS's finances do not look good, but they never did. They had $4M cash on hand last quarter with a cash burn of $3M/quarter, so their lack of funds was predictable. The key indicator will be whether they were successful in submitting their upfront bidding fee to the FCC. If they did, they must have found a financial backer, and developed a broad strategic plan. If not, CVUS will probably be sold soon after the auction. I find it interesting that they finally decided to concentrate on Internet access services, and in particular on bandwidth expansion for suscribers to ISPs (instead of their own Internet service). This is obviously the correct strategy for the next few years. It is rather sad it took them so long to find it. Perhaps, this may suggest that a partnership with an ISP company might be in the cards. b) There is strong evidence that some big names are hiding behind the partnerships bidding for the LMDS auction. I am not sure that AT&T, Sprint and British Telecom are among them, but some of the Baby Bells appear to be present. Concerning Bill Gates and MSFT, their participation will probably be indirect, either through Comcast or through MSFT ISP unit. Note that MSFT and Intel need desperately to break the bandwidth stranglehold facing home PC users. To do so, they will put their weight behind each and every one of the broadband access technologies (ADSL, cable modems, LMDS). c) Note that because of the stringent FCC anti-collusion rules for the LMDS auction it is unrealistic to expect any information to filter out before the auction. This is why CVUS's stock price is not moving. The uncertaintly is just too great to justify an upward move at this stage. Best regards, Bernard Levy