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

To: ANDREW TISTLE who wrote (8341)	9/23/1998 1:16:00 PM
From: Bernard Levy	Read Replies (1) \| Respond to of 12468

Andrew: Vogel's $97 number ifs his estimate of the value of WCII based on a forward 10-year discounted cash flow (DCF) model. The relation of this number with the actual WCII stock price is loose at best. It is only after WCII becomes EBITDA positive (hopefully, in late 99) that I expect that the stock price will start tracking the DCF number. In the meantime, there is an execution risk factor which will keep the stock price lower than Vogel's number. Also, note that Vogel's number is at the high end of analysts valuations. Other analysts (F. Governali, J. Grubman) use DCF models which give a value to WCII in the $60 to $65 range. Note on the other hand that the takeover value of WCII should be very close to DCF numbers. Best regards, Bernard Levy