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

To: Sawtooth who wrote (160)	5/7/1999 7:27:00 PM
From: SteveG	Respond to of 1860

CSFB: WCII: WCII Adding Improved Mix On-Net And Data Access Lines BUY MID CAP WinStar Communications (wcii) 1Q99 access line results illustrate improving mix on-net and data lines driven by Millennium sales initiatives. Summary WCII announced that it installed 65,000 access lines in 1Q99, in line with our est. Of total, 40% were on-net (on-radio) voice lines, 30% were on-net data lines, and 30% were resold. Total lines are now 24% on-net. Millennium sales initiatives are producing desired results. The take rate on multiple services increased to 60% from 25% in 1Q98. 60% of new customers signed 3-yr contracts. ( Millennium customers that sign 3-yr contracts receive one yr free local but must buy intraLATA toll. In its on-net buildings, WCII has achieved a penetration rate of 14%, up from 6% at end of 3Q98. In some buildings penetration has hit as high as 50%. WCII's long term building penetration goal is 10%. WCII plans to report 1Q99 financial results on Wednesday, May 12. No change to our revenue est of $186.5 mil and EBITDA loss estimate of $81 mil. Price Target Mkt.Value 52-Week 5/5/991 (yr end) Div. Yield (MM) Price Range 46.063 $63 $2,556.5 $51 - 13 Annual Prev. Abs. Rel. EBITDA/ EPS EPS P/E P/E Share 12/00E $(12.33) NA NA $(3.13) 12/99E (13.88) NA NA (5.96) 12/98A (11.96) NA NA (5.52) March June Sept. Dec. FY End 1999E $(3.69) $(3.72) $(3.38) $(3.12) Dec.31 1998A (2.54) (2.77) (2.83) (3.80) 1997A (1.27) (1.85) (1.97) (2.50) ROIC (12/98) (21.7%) Total Debt (12/98) $1,403 Book Value/Share (12/98) NM WACC (12/98) 12.3% Debt/Total Capital (12/98) 103% Common Shares3 55.5 mil EP Trend2 Down Est. 5-Yr. EPS Growth Est. 5-Yr. Div. Growth 1On 5/5/99 DJIA closed at 10955.4 and S&P 500 at 1347.3. 2Economic profit trend. 3Shares outstanding represent fully diluted shares. WinStar is a competitive local exchange provider using 38 GHz technology to build out local telecom networks in major markets throughout the country.