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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: TokyoMex who wrote (952)	7/24/1998 6:51:00 PM
From: STEAMROLLER	Read Replies (3) \| Respond to of 119973

Riley Capital Research Issues Strong Trading Buy on PSINet Business Wire - July 24, 1998 15:39 HOUSTON--(BUSINESS WIRE)--July 24, 1998--Riley Capital Research announces that it has issued a "Strong Trading Buy" rating on shares of PSINet Inc. (NASDAQ:PSIX). "On Tuesday PSINet reported another quarter of record revenues that confirms its dominant position in the Internet Service Provider industry. The $53.7 million in revenues that the company reported in the quarter far exceeds the $37.64 million in revenues recently reported by EarthLink (NASDAQ:ELNK) and the $25.06 million in revenues recently reported by MindSpring (NASDAQ:MSPG)," says Mr. Louis Riley, principal of Riley Capital Research. "PSINet's quarterly revenues represented 20.8% sequential growth over the previous quarter, versus Earthlink's 28.7% sequential growth and MindSpring's 17% sequential growth. Yet at $20 per share the company's stock trades at less than 5 times its run-rate revenues, versus almost 8 times for EarthLink at $42 and more than 11 times for MindSpring at $146. We think that PSINet deserves a much higher multiple that reflects its position as an industry leader and its consistent record of meeting or exceeding Wall Street's consensus estimates for six quarters in a row. If PSINet were to be awarded a forward price to sales multiple equal to MindSpring's it would imply a stock price in excess of $40." "Moreover, all of the ISPs clearly appear to be in play. AT&T's reported spurned bid for American Online (NYSE:AOL), MindSpring's CEO's recent hints regarding his willingness to sell, and PSINet's rejection of a $10 bid in January of this year all illustrate the fact that these companies possess valuable tangible assets and infrastructure that are likely to be highly prized by strategic buyers. We think aggressive investors and traders may soon recognize and narrow the wide valuation gap that we believe PSINet shares offer at their current price." Riley Capital Research is a research boutique that specializes in highlighting investment opportunities that have frequently been overlooked by most investors and that are not followed by the majority of Wall Street sell-side research organizations. Some of the firms' recent buy recommendations have included PeopleSoft Inc. (Nasdaq:PSFT) at $39 3/4 on July 23, Zapata Corp. (NYSE:ZAP) at $20 1/2 on July 15, and Egghead.com (NASDAQ:EGGS) at $15 1/2 on July 9. This report contains information obtained from sources which we believe to be reliable, but its accuracy is not guaranteed. Certain matters described in this report are forward-looking statements and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Opinions expressed are subject to change without notice. This report should not be construed as a solicitation or offer of any kind. Neither Riley Capital Research nor any of its affiliates received any compensation of any kind for the opinions expressed herein. Mr. Riley and affiliates of Riley Capital Research currently hold positions consistent with the above rating. CONTACT: Riley Capital Research, Friendswood Louis Riley, principal i guess this sparked the rally at 3:30 that i did not trust, but could of picked of a 1/2 point. SR