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

To: SteveG who wrote (4700)	3/26/1998 9:32:00 AM
From: SteveG	Read Replies (1) \| Respond to of 12468

Finally: "Believe the Ramp: WinStar is our best idea in the telecommunications sector" -NBMO's Vogel - (printed on 18th, though brokers got this this morning, SOME clients MAY have seen this last week - and might account for the rise) Highlights of 37 pager: - Current price does not reflect the scarcity or the superiority of WinStar's assets. WinStar is valued at $26MM per major top market with remaining 110 markets thrown in for free. After 12 years of construction and operation, Teleport is connected to 4638 buildings in the 60 top markets. On a per market basis, Teleport's acquisition price is $183MM per market. We believe WinStar is worth at least $64MM per major market to a strategic buyer, reflecting a takeover price of $100 per share. Moreover, our DCF analysis with a 10x estimated 2007 EBITDA and a 20% discount rate yields a private market value of $100 and a trading price of $80. -WCII is LAST of 3 fully operational national CLECs. -Increasingly superior capital efficiency and time to market enable unprecendented return on investment. Currently costs $20,000, heading toward $4000 to reach an office building relative to $100,000 of capital for fiber-based CLECs. [As of the auction we have over 1 billion channel pops]