Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: silicon warrior who wrote (5547)	4/28/1998 11:50:00 AM
From: James Fink	Respond to of 12468

<< so, wcii actually got a 14 dollar stock for 1.75>> You are right silicone, and if WCII was going to sell its ARTT stake for cash today I would say that WCII was very smart. The problem is WCII is not going to sell the ARTT stake today. WCII is holding on to the stock. As WCII declines, so will ARTT, and by the time WCII is ready to bail out of ARTT, the stock price of ARTT will be much lower than its current $14 price tag.

To: silicon warrior who wrote (5547)	4/28/1998 3:49:00 PM
From: SteveG	Read Replies (1) \| Respond to of 12468

All, Another report was put out today by Jefferies & Co. They rate WinStar a BUY and have a $61 dollar price target on it by year end 98. Their report had this to say: We view WinStar's April 27th purchase of a 14.9% stake in ARTT as a fairly low risk proposition for WinStar. Given management's (and our own) conviction about the value of 38 GHz licenses, this move should prove to be a valuable asset for the Company. This strategic investment creates a win-win proposition for WinStar. Either the Company increases its stake in Advanced Radio to a controlling interest or, at worst, it participates in ARTT's ability to independently utilize this bandwidth. * WinStar pays a 22% premium for 14.9% of ARTT. WinStar will issue one share of its common stock in exchange for every 2.2 shares of ARTT purchased. The conversion ratio results in a purchase price of $17.39 per ARTT share, based on WinStar's closing price on April 24, 1998. WinStar will issue 1,525,302 restricted common shares in connection with this transaction, and will receive 3,313,864 common shares of ARTT and certain other unrelated assets. These shares will come from the hands of private investors; a group whose identity WinStar would neither identify nor classify. * This purchase creates two distinct scenarios for WinStar. The first possibility is that WinStar increases its equity position in ARTT, ultimately gaining a controlling interest in the Company. This would allow WinStar to fill the gaps in ARTT's portfolio of licenses. The other possibility is that WinStar maintains a non-controlling interest in ARTT and benefits from ARTT's ability to independently build a company which fully utilizes these licenses. * National Footprint With Plenty Of Bandwidth. Over the past four years, WinStar has acquired 38 GHz licenses in more than 125 cities with populations of greater than 100,000. Among these cities are the 50 largest US markets. The Company owns more than twice the "wireless bandwidth" of its nearest competitor and is the largest holder of spectrum in the history of the United States. Yet despite the breadth of this footprint, management recognizes the strategic value of amassing an even greater stake in this spectrum. This move verifies WCII's (and our own) conviction about the value of 38 GHz licenses. * Attractive Valuation. WinStar is currently trading at a 58% discount to our estimated year-end 1998 asset value of $87 per share. As the year progresses, we expect this "public market discount" to shrink as it has in the past to approximately 30%, thus driving the stock to the $61 range. The 66% upside implied by this target price supports our BUY rating. Regards-