To: nikko who wrote (10535 ) 11/12/1998 4:36:00 PM From: Rande Is Respond to of 119973
RE: AVCO = KTEL. Pair Gain rose on hopes of ADSL taking the world by storm. AVCO will not, IMO. Problem 1: FCC regulations limited data transmissions over POTS, using regular copper wire, to UNDER 50k. That explains why that new 56k modem rarely ever runs at 56k and nobody has released a faster modem for home use. Problem 2: The hundreds of thousands of switching stations in each little town across the country cannot accomodate xDSL, or higher bandwidth. They would all need upgraded and the numerous local phone companies are not willing to do so. Bottom Line: Future of ADSL will be limited to isolated areas like the AVCO start-up announced today. But that does NOT translate into AVCO suddenly becoming the next At Home Network. Cable Modems already run more than 50 times faster than modems and even faster than ADSL. The new fibre-optics lines being strung up by cable companies are the REAL future. And that is why Bill Gates and A. T. and T. spent many billions of dollars buying the best cable companies in the country. THERE is your long. AVCO is like KTEL. Hot air press releases and a small float send it soaring into the stratosphere. Funny how companies can suddenly end up with bigger floats than they started with. KTEL started with 1.5 mil float. Then they announced they had deals [were advertising with] with the big boys...who were they? AOL, Yahoo, Amazon, Disney, Playboy, Microsoft, ad infinitum. They split 2-for-1 and ended up with 8.5 million in float. Now that is what I call some serious dilution. At an average of just 10 per share. . . 150mil? WHEW. That should buy some more advertising. . . Who's next? EBAY? ATT? GO NETWORK? MIRABILIS? Wanna bet? Rande Is