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

To: Bill Lotozo who wrote (4529)	3/17/1998 11:33:00 PM
From: Steven Bowen	Respond to of 12468

"Is this industry segment getting ready to repeat last summer?" Hey, that wouldn't be too bad. The entire sector almost doubled last summer, from beginning of May to end of Aug, or so. Now I hope you weren't asking if we'd repeat last Winter and Spring! I don't see much merger mania happening lately. Not many stories in the news and we haven't even had any rumors here in a couple months. The only "mania" we've seen lately would be the growth mania. It seems people are really awaking to the potential of the sector and we're seeing a lot of good growth numbers coming from every company in this sector. Future looks good for a lot of these companies, mergers or not. "no one left to buy or no more leverage room for the buyers" There's still alot of potential buyers (AT&T, Sprint, all the Baby Bells, GTE, probably more from Worldcom, probably foreignors like British Telecom...). And leverage still looks good. Figure ten years out, WinStar is projected (by Governali, so probably conservative) to have revenues of around $4.5 billion and have positive EBITDA of about $1.5 billion. I think that makes a buyout at even $4 billion today look pretty cheap.