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

To: Jason Cogan who wrote (8040)	8/31/1998 9:41:00 PM
From: Bernard Levy	Read Replies (1) \| Respond to of 12468

Jason: Regarding access to junk bond financing, keep in mind that WCII was able to secure significant financing 4 or 5 years ago when its business plan was not much to look at. Right now, it is the dominant wireless CLEC (Teligent has not even remotely started to execute), and it is financed until the end of 99. The current market turbulence is in fact a good thing for Winstar, since it means all the weak CLECs (such as ARTT) will not be able to get financing, or will be forced to consolidate. So the winners are the more mature CLECs. In terms of presence in telecom markets, WCII is now the second largest of all CLECs (after Teleport) with 27 markets (30 by the end of the year). It took 15 years for Teleport to go to 30. It will have taken only 3 years to WCII. I agree that market shakeouts such as the one we are seeing constitutes a period of rationalization, where weaker players disappear, and where stronger players get stronger. Where we disagree is that you see Winstar as a weak player, while I view it as a strong player. IMHO, if we had to accept your thesis, all CLECS would disappear, since WCII is clearly in the top tier (and perhaps the top) of all CLECS. But this does not make sense, since the local phone market is now wide open for competition against RBOCs. So, the better CLECs (WCII included) will not only survive, but will in fact thrive. This does not mean that WCII's price will rise like a rocket during the coming 6 months. WCII needs to execute well for 3 or 4 quarters, and then the stock price will follow. Best regards, Bernard Levy PS We know that today was totally irrational when limtex sells his WCII shares, but yet sees excellent long-term prospects for the company.