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Technology Stocks : CellularVision (CVUS): 2-way LMDS wireless cable. -- Ignore unavailable to you. Want to Upgrade?

To: Ken98 who wrote (1522)	3/14/1998 8:31:00 AM
From: James Fink	Respond to of 2063

Ken98, The following is an excerpt from CVUS' 10-Q filed in November 1997. The excerpt states that CVUS' license renewal "conforms to the final LMDS rules," which include eligibility restrictions. CVUS is not subject to unjust enrichment (and therefore can sell its license at any time and to anyone, other than in-region LECs and cable companies) because the unjust enrichment rules apply only to bidders at the auction who received bidding discounts. See below: CellularVision 10-Q November 13, 1997 Renewal of NY PMSA Commercial License: The Company's commercial license was renewed by the FCC on September 23, 1997, for a ten-year term which expires on February 1, 2006. (Note: The ten-year term commences from the expiration date of the company's prior license term which expired February 1, 1996.) This confirmed that the Company will not be required to bid on or pay for the New York PMSA license in the upcoming FCC auction of LMDS spectrum. The Company's renewed license conforms to the final LMDS rules adopted by the Commission in the LMDS Second Report and Order. Under this license, the Company is authorized to offer the full panoply of LMDS services the technology is expected to offer and may construct transmitters throughout the New York PMSA without seeking prior FCC approval.

To: Ken98 who wrote (1522)	3/14/1998 8:58:00 AM
From: James Fink	Read Replies (2) \| Respond to of 2063

I found this financial tid-bit in the January 1998 CVUS press release announcing JP Morgan's lending of an additional $1 million. It appears to demonstrate that although CVUS has a cash crunch problem and suffers illiquidity, it nevertheless possesses a relatively strong balance sheet and substantial shareholder equity. "The company's cash position as of the closing of this note is approximately $1 million. CVUS net working capital deficit is approximately $6 million. Property plant and equipment is estimated at $21 million with debt under $9 million. Stockholders' equity is currently estimated to be approximately $12 million." One must remember that CVUS' balance sheet does NOT include the value of its New York license, because it paid nothing for the license. Assuming the license is worth $7 per pop, this amounts to additional shareholder equity of ($7/pop * 8.6 million pops) = $60.2 million. Add this $60.2 million to the balance sheet equity of $12 million and you get a final shareholders equity of $72.2 million. Book value per share is, therefore, $72 million/16 million shares = 4 1/2, above the current stock price. In addition, many stocks trade at between 1 1/2 and 2 times book value. If my estimate of the per-pop value is too low, so much the better. If my estimate of the per-pop value is too high . . . I choose not to contemplate that prospect.