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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Hope who wrote (21490)	1/7/1999 4:12:00 PM
From: Jenna	Read Replies (5) \| Respond to of 120523

I like ESPI.. I researched this one already when I wrote on the CLECS. I feel that have been hit quite a lot and they have just decided to phase out their total service resale from their forward looking plans Their estimates for 1999 were downgraded, but all this bad news is already factored into the price. You would expect revenues to decline because of there decision to phase out the resale access. ESPI is trading a very low multiple .. now there must be a potential acquirers out thre interested in ESPI's nationwide ATM network and regional CLEC coverage. That alone would probably rate this stock a buy.. also there seems to be little downside risk. If they are bought out it will most likely be a really nice amount to cover all the assets of this company (i.e. the ATM network and regional CLEC coverage.).. I would think you would have to hold quite a while in order to overcome the fact that next year their earnings are predicted to be -6%.. but if they don't get taken over you can always get a profit from it in the next few days/weeks simply because its technical chart is fair to good. Careful here though stochastics are overbought.