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: wrm1 who wrote (8236)	9/14/1998 12:34:00 PM
From: SteveG	Read Replies (1) \| Respond to of 12468

WinStar presenting in 15 minutes Here are this AM comments from NBMO: ================= Major Legal Win Opens Federal Contracts to WinStar. Reiterate BUY. WinStar has won a critical legal case with the US Court of Federal Claims which exclusively opens hundreds of millions of GSA contracts to bid by WinStar. We have increased confidence in our revenue and EBITDA forecasts as follows: (in $millions, except per-share data) YEAR Revenue EBITDA EPS 1997A $79 -$158 -$7.49 1998E $278 -$193 -$11.22 1999E $751 -$97 -$8.15 2000E $1,251 +$125 -$3.24 2001E $1,816 +$381 +$2.60 2002E $2,428 +$558 +$6.35 Decision makes WinStar the only authorized "other bidder" for hundreds of millions of General Services Administration contracts. Contracts are presently held exclusively by the large local telephone companies in 40 major markets across the USA The first contract up for bid is a $200 million for the New York City metro area with Chicago and San Francisco also in the bidding process. The ubiquity of coverage of WinStar's Wireless Fiber technology relative to other CLECs makes it unlikely that fiber-based CLECs will get approval to bid. Even if approved, we believe that fiber based CLECs will have a competitive cost and coverage disadvantage in bidding for GSA contracts The Court made its decision in response to a protest filed by WinStar relating to a contract to be awarded by the General Services Administration. WinStar made the case that the GSA has to follow a statutory mandate to give preference to the multiple-award contract process. Prior to this case, the Federal Government was not putting its contracts out for multiple bidders. CONCLUSION WinStar continues to be our number one choice in the telecommunications services sector. We anticipate a strong progression of major contract wins over the next several quarters, which will differentiate WinStar from the other CLECs. Today's legal win again underscores the distinct competitive advantage that WinStar enjoys relative to fiber-based CLECs. It also underscores that the visionary, innovative, and highly entrepreneurial management team at WinStar continues to create value for shareholders. We reiterate our BUY recommendation and $97 price target for WinStar shares. =====================