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

To: limtex who wrote (6256)	5/26/1998 9:57:00 PM
From: Jason Cogan	Respond to of 12468

limtex: <<There must be people working on this stock with enough know how and resources to keep it in the range $33 -- $40 or just under. Don't know why unless there is some big logic relating to conversion prices and interest rates on debt.>> Possibly, but my theory is that the market is starting to come to grips with things like valuations. Companies may have the best prospects in the world (ie. Winstar, Yahoo, AOL, etc.), but ultimately, valuations do matter. The equity on Winstar simply can not support these valuations, given the level of debt, continued EBITDA losses, and immediate earnings prospects. There are too many alternative places to put capital, particularly if interest rates begin to rise. At some point, Winstar will be a good buy. But not at these prices. Just my two cents. Regards, JC