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Strategies & Market Trends : Fatty's Donut Shop -- Ignore unavailable to you. Want to Upgrade?

To: Michael Graham who wrote (867)	4/26/1999 10:17:00 PM
From: Matt Brown	Respond to of 5041

Excellent XNET post by Frank-- Some More XNET Comparison's; From XNET's PR's from their Web Site, I was able to calculate a rate of growth as follows: Subscriber 7/98 10,000; 2/99 20,000, that's a 100% increase in 5 months or 240%/year!! Wall street analysts look closely at revenue growth to aid in arriving at valuations for the stocks they follow. You can find these numbers in Quicken.com's Analyst section. For comparison let's look at some Hot companies compared to XNET;Company Projected Growth/1yr Growth/4yrs Cisco 30% 190% DELL 35% 230% AOL 50% 410% PacificInternet 66% 660% XNET 200% 15,000% As you can see, a small change in projected growth, has a large effect on the future projected revenues during the 4-5 year business cycle. This is why 33/34 analysts that cover AOL rate it a STRONG BUY or BUY despite it's current valuation with a Market Cap to Revenue ratio of 40+ and a P/E of 730!! How many stocks currently do you have in your portfolio that have a potential growth rate of 200+%?? How would analysts rate such a stock? XNET will open 2 more cities Next Month & each city has installed capacity of 20,000 subscribers/site (80,000 total) This assures they can handle the growth for the immediate future. If XNET were to capture 1% of the potential market in the cities they will have services in the next 5 years, they would have 680,000 subscribers!! On March 1, 1999, The Ministry of Information Industry (MII) announced fees reduction for internet use by 50% , cut international phone charges to many parts of the world by nearly 20%, and lowered the cost of domestic telephone line installation for some urban residences by more than 70%, as well as offered free installation of second phone lines. How fast would AOL grow if you got a free 2nd phone line for signing up? I watched the press conference yesterday with Zhu & Clinton and was impressed with this guy being a mover & a shaker. He wants to get into the WTO & I think this is just a matter of time. In the meantime, the internet market is closed in China & gives XNET a great head start to establish itself. It's portal in Beijing is already well established and getting more hits every day.http://www.chnmail.com Pacific Internet has already expressed their desire to acquire more Asian ISP's. Do you think XNET would be a potential takeover target? What about AOL's desire to get into the Asian market? Disclosure; I am long XNET for several thousand shares & remain so for the reasons stated above.