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 : Rhythms NetConnections Inc. (RTHM) -- Ignore unavailable to you. Want to Upgrade?

To: SteveG who wrote (47)	4/8/1999 6:30:00 PM
From: Bill McCullen	Read Replies (1) \| Respond to of 378

Does anyone have access to this research? I would love to see the magical formula that translates a DSL CLEC into a $6.4B company. This business is going to be extraordinarily cut-throat (low margins) with competition between the DSL CLECs and once the incumbants get involved look out. Plus, the MSO are going to start going after small-mid size businesses too which is the target market for Covad, Rythms, Northpoint, etc. For anyone lucky enough to get in at the IPO - congratulations! but I wouldn't chase these stocks for the long term. Last year it was the alternative long distance carriers that the money was chasing (STRX, PGEX) just look what happened to those guys. To deserve an MC of $6.4B this company has to be running at $300+M revenue per year and even that is a rich valuation that RTHM won't see for years. What do these companies own besides some DSL HW and SW? They don't own the facilities which is where the real value is. They may own the access to the customer but do they really own the customer if I can switch from Covad to Northpoint and keep my Mindspring account? These stocks will trade at 1/10 of their value today within 18 months. Bill