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Technology Stocks : COLT Telecom (COLT) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Mohebbi who wrote (30)	10/26/1998 4:34:00 PM
From: Racso	Read Replies (2) \| Respond to of 95

COLTY: no good news at all [SELL] There is no reason to get too excited about the results released today. Here is why: - Operating losses and total net losses keep growing. This quarterly losses are not only the worst ever but also show the biggest percentage increases since March 1997; - Although installation keeps adding on (buildings, customers, route kms) the only key operating measure that matters is line usage (switched minutes) which shows consecutive decreasing rates since December 1997. As mentioned by Deutsche Bank in a recent report, this may be because pent up demand in Germany (a key market) is starting to run its course. -Total debt has increased this quarter to Stg 784mm (about $1.3 billion) which will result in higher financing costs and increasing losses. According to today's Bloomberg, COLTY may be demoted from the FTSE-100 (the top UK index) to the less exclusive FTSE-250. No doubt this will prevent several blue chip funds to buy.