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 : IDT *(idtc) following this new issue?* -- Ignore unavailable to you. Want to Upgrade?

To: blankmind who wrote (4098)	4/8/1999 8:49:00 PM
From: Secret_Agent_Man	Respond to of 30916

Telecom carriers get Internet prices MGC's gains on high-speed data shift illustrates trend By Jeffry Bartash, CBS MarketWatch Last Update: 4:25 PM ET Apr 8, 1999 NewsWatch Net Headlines WASHINGTON (CBS.MW) -- The frenzy over Internet stocks is branching out to carriers that offer high-speed access to the web. For a fourth day, shares of MGC Communications (MGCX) moonrocketed in the afterglow of the small independent phone carrier's announcement Monday that it will offer high-speed data service. Shares surged 16 1/4, or 76.5 percent, to 37 1/2. The stock, which closed at 9 last Friday, has seen its market capitalization climb to nearly three-quarters of billion dollars from $175 million at the end of last week. Its ascent comes amid the spectacular performance of Rhythms Netconnections Inc. Englewood, Colo.-based Rhythms (RTHM) sold an initial 9.375 million shares at $21 each on Tuesday and has since soared to 71. Stocks of high-speed data access companies are rising with the demand for Internet connections at companies and in homes across the United States. See related story. Strategic shift On Monday, MGC said it received $47.5 million in investment through the issuance of convertible stock, which it plans to use to roll out DSL, or digital subscriber line access. Overall, MGC said it has $171 million in cash on hand to build its high-speed network. IDT also has CASH 146 Million Plus the 150 Million they got to do the bond consent! IDT already has it's Network and BANDWIDTH IS KING AND IDT is the BARBARIAN at the BANDWIDTH GATE LOOK at their TELCO PARTNERS! and the FIBER expansion! "Anything with broadband attached to it gets a heady valuation," said analyst Roderick Beck of Commonwealth Associates. "Investors saw how Covad's IPO went and want to get in on the action." Santa Clara, Calif.-based Covad Communications (COVD) went public Jan. 22 at $18 a share, but now trades at 70. Another company that offers high-speed service, Northpoint Communications, is expected to go public in May. It could also take Wall Street by storm. Strong partner *WELL WITH SOFTBANK+IDT* HAS a STRONG PARTNER TOO! What's also helping MGC is the involvement of Providence Equity Partners, an investment firm respected for its expertise in the telecom sector. See press release. Providence was a founding investor in Brooks Fiber, which was sold last year to MCI WorldCom (WCOM) for $3 billion. Investors apparently hope the firm can work the same magic with MGC. "The company is very much a hands-on investor that has played a vital role in the funding, growth, strategic development and merger and acquisition initiatives of success stories such as Brooks Fiber, MetroNet Communications (METNF) and Verio (VRIO)," Bear Stearns analyst{{{HEY are'nt the Silent on IDT}}} James Henry said in a note to clients Tuesday. He reiterated a "buy" rating. Right now, MGC is primarily a provider of competitive local and long-distance service to businesses in Las Vegas, Los Angeles, Atlanta, Chicago and southern Florida. It lost $32.1 million in 1998 on sales of $18.2 million. Beck projects that revenue will rise to $45 million in 1999. NOW WE ALL KNOW IDT REVENUES are WAYY ABOVE THAT and WE KNOW IDT IS GLOBAL not just local! Increasingly, independent phone companies are moving to offer DSL or related high-speed services to capitalize on growing demand for fast Internet access from consumers and businesses. High-speed access is more lucrative than traditional phone service. See Thom Calandra's StockWatch. I dream of GENIE** WITH the HIGH SPEED ACCESS! And with the success of MGC, Covad and Rhythms, analysts expect more competitive phone carriers to announce big effort to expand into DSL -- and capitalize on investors' appetites for such equities. Jeffry Bartash is an online reporter for CBS MarketWatch. Cheers