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Technology Stocks : Broadband Wireless Access [WCII, NXLK, WCOM, satellite..] -- Ignore unavailable to you. Want to Upgrade?

To: SteveG who wrote (30)	4/15/1999 2:58:00 AM
From: SteveG	Read Replies (2) \| Respond to of 1860

TGNT: Secures Second Source For Multipoint Equipment Bankers Trust Research/BT Alex. Brown Research Bo Fifer,Jeffrey Hines April 14, 1999 --------------------------------------------------------------------------- ---- TELIGENT INC. [TGNT] "STRONG BUY" Secures Second Source For Multipoint Equipment --------------------------------------------------------------------------- ---- Date: 04/14/1999 EPS 1998A 1999E 2000E Price: 55.0 1Q (0.73) (2.20) NE 52-Wk Range: 63 - 18 2Q (1.12) (2.33) NE Ann Dividend: 0.0 3Q (1.49) (2.46) NE Ann Div Yld: 0.00% 4Q (2.00) (2.55) NE Mkt Cap (mm): 3,702 FY(Dec.) (5.43)A (9.54) (10.30) 3-Yr Growth: FY P/EPS NM NM NM CY EPS (5.43) (9.54) (10.30) Est. Changed No CY P/EPS NM NM NM --------------------------------------------------------------------------- ---- HIGHLIGHTS: -- Teligent announced last night (14-Apr) that it has secured a second supplier of wireless point-to-multipoint equipment (PMP). Hughes Network Systems will now be supplying radios along with Teligent's primary vendor, Nortel. -- POSITIVE NEW NEWS: The Hughes radios up the ante significantly in terms of PMP capacity. We believe the new radios will provide multiple T3 (45 Mbps) capacity in a single 80 MHz channel (25 MHz per fully-duplexed T3) for about the same cost as the 8xT1 radios that are available today. -- NEGATIVE NEW NEWS: NONE. But just to be clear, we do not expect these radios to ship until 2H 1999, which is consistent with our thoughts on general commercial PMP availability. For those who would have liked to see a vendor credit facility in conjunction with this announcement, we note that Teligent is sitting on about $1.2 billion in cash and available bank credit (which is usually preferable to vendor credit, anyway) and is not likely to require additional financing until 2001. -- NET-NET: For those customers requiring T3 kinds of capacity, it used to be that fiber was the only real alternative. We believe this announcement pushes the "sweet spot" for fixed wireless access further up market to the same kind of (highly profitable) users that had previously been reserved for fiber. -- VALUATION: Our 12-month DCF-derived price objective is $50/share. We will be reexamining our price objective in light of recent announcements. While the stock has run up to (and past) our price objective, we believe TGNT is still very attractively valued relative to other broadband local access plays (namely DSL). This announcement also improves the company's ability to target larger high-end (i.e. higher profit) customer base.