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Each and every week at 7:00 PM EST on Sunday, Stockprowler will bring you his latest hot stock pick of the week ...free on the Web! Stockprowler uses state of the art technology to look under the rocks and find those little stocks with the potential to make the BIG moves. Stockprowler screens primarily NYSE, AMEX, and NASDAQ stocks trading around $3 or under. These stocks offer considerable leverage at minimal cost. It is not uncommon for these stocks to make moves of 30%, 50%, or more. Please read our disclaimer before trading in any stocks mentioned on this Web site. So are you ready? Here's the Stockprowler report for the week of Monday, August 21, 2000: |
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Readers take note… beginning next Sunday, August 27, 2000 Stockprowler.com will be issuing its weekly report and e-mail alerts on a new day and time… Sunday at 7 PM EST. It is apparent from the mail we receive that most readers prefer getting the Stockprowler Report on Sunday. The market appears poised for a fall rally, likely to begin on Tuesday with Greenspan's anticipated announcement of no further interest rate hikes this year. Early signs of an imminent rally were seen Thursday and Friday with the sudden strength in the tech sector. Keep in mind that although the Dow is near its spring high, the Nasdaq composite is still off 1200 points or nearly 25% from its high. We could see one heck of ride in the coming months… Recent Stockprowler picks AVN and IMAT surged 43% and 22% respectively intraweek, something we haven't seen in a while and, perhaps, a harbinger of things to come… Also, before we get to this week's pick, take a look at Fibercore FBCE maker of optical fiber for telecom and data communication. Stockprowler had a watch on this stock back in December when it was trading around a buck a share. It climbed out of our range before we could do a report on it and hit $11/ share before reversing course during the big Nasdaq sell-off. Well it looks like FBCE is on the move again closing Friday up 15/16 at 8 3/16 on the news of $39 million in new orders… that's a total of $87 million in new orders in the past 3 weeks. Stockprowler's pick this week is… DSL.net, Inc. (NasdaqNM: DSLN)
New Haven, Connecticut based DSL.net, Inc. is a high-speed data communications and Internet access provider that uses digital subscriber line (DSL) technology to provide high-speed Internet solutions to small and medium-sized businesses, primarily in second and third tier cities throughout the United States. DSL.net provides a business-class DSL connection that enables growing companies to become more productive and efficient, and allows them to take advantage of Internet applications and Web-based services once only available to large corporations. DSL.net's high-performance network, direct-to-customer sales and support model, and broad national footprint make it a key partner to leading business solution providers who are looking to offer on-line applications and services to emerging enterprises. DSL.net presently offers services to over 300 cities in 45 states. DSL.net technology supplies the necessary bandwidth for numerous applications, including high-speed access to the Internet, dedicated Internet connectivity, remote Local Area Network (LAN) access, videoconferencing, and Virtual Private Networks (VPN). DSL.net provides a direct broadband digital connection using existing copper telephone lines. There are many varieties of DSL technology. DSL.net provides the optimal Business-to-Business solution, SDSL. This technology provides the same bandwidth in both directions, upstream and downstream. That means whether you're uploading or downloading information, you have the same high-quality performance. SDSL provides transmission speeds within a T1/E1 range, of up to 1.5 Mbps at a maximum range of 12,000 - 18,000 feet from a central office, over a single-pair copper wire. This option is ideal for small- and medium-sized businesses that have an equal need to download and upload data over the Internet. In addition to the bi-directional speed advantage that SDSL has over ordinary DSL (or ADSL that most Telecoms push as DSL) and cable, SDSL also has an important edge over cable in two other respects. First, cable speeds are directly proportional to how many users are on the shared line. SDSL and other DSLs offer independent access. The second advantage is security. A shared cable line places your business on the same subnet as other users, making your traffic visible to anyone on your subnet with a monitoring program… and consequently, at risk to hackers. On June 5, 2000, DSL.net signed an agreement with the U.S. Federation of Small Businesses (USFSB) to offer high-speed digital subscriber line (DSL) Internet access and services to USFSB members. Under this new agreement, DSL.net will immediately begin to roll out its comprehensive offering of broadband Internet services to over 12,000 USFSB member businesses across the country. Faster Internet access enables small and mid-sized companies to be more productive and efficient, and allows them to take advantage of Web-based applications and services once only available to large corporations. Headquartered in Schenectady, N.Y., the USFSB is one of the nation's largest organizations dedicated to helping small businesses succeed and grow. It offers a variety of affordable group programs for business owners, including health insurance and business and service discounts. With this alliance, the USFSB will market DSL.net service to its membership base. "High-speed Internet access allows small businesses to leverage the power of the Internet to sell their products or services, and provides them with the tools they need to compete in the marketplace,'' said Joseph Cardamone, President of USFSB. On July 27, 2000 the company reported second quarter financial results for the period ending June 30, 2000. Total revenue for the second quarter of 2000 was $3,786,000, representing a sequential increase of 118 percent when compared with the quarter ended March 31, 2000. "Today we've announced the fourth consecutive quarter of 100 percent or better revenue growth, which is indicative of continued customer demand for our business-class broadband products and services," said David F. Struwas, president and chief executive officer of DSL.net. "We believe our direct relationship with the customer, which captures substantially more revenue per customer than wholesale DSL providers, and our ability to provide them with additional value-added service offerings, positions DSL.net well to counter the trend towards free installation. We are also addressing various industry-wide issues that delay installation of service for a signed customer through measures such as the implementation of additional electronic interfaces to local exchange carriers, which will improve order flow and reduce order rejection." DSL.net reported that it ended the second quarter with 440 collocations in over 300 cities complete and operational, exceeding management expectations. Earnings before interest, taxes, depreciation, amortization, and non-cash stock compensation (EBITDA) were negative $23,764,000 for the second quarter of 2000. EBITDA for the first quarter of 2000 was negative $15,876,000. The company posted a net loss of $27,287,000 for the quarter, or $0.45 per share, compared to a net loss of $18,338,000, or $0.33 per share, in the first quarter of 2000. On July 1, 2000 DSL.net was added to the Russell 3000 Index of publicly traded companies. Analysts expect that the number of DSL subscriber lines will grow from 500,000 last year to 13+ million by 2003 and project the DSL market to be $15 - $18 billion by the same year. Deutsche Banc Alex. Brown estimates a 3 - 5 year growth rate for DSL.net, Inc. of 219%, and on August 9, 2000 set a price target of $26/share for the next 12 months. DSL.net has the first mover advantage in its target market of tier II and tier III companies. It also has a close strategic partnership with Microsoft and Staples. Operationally, the company closed out the last quarter with over 6000 DSL client lines and 440 server-ready central offices, which was in line or exceeded analyst expectations. The company has $139 million in cash with which to rollout its expansion. DSL providers like DSL.net, Inc. are installing high-speed, or "broadband," networks across the country, which are attractive assets for larger competitors that want to provide faster Internet connections for their business and residential customers. With the large telecom players looking to extend their reach to tap more customers at the point where they connect to a network using a high-speed line such as DSL, it may be only a matter of time before DSL.net and its others get swallowed, according to analysts. "Once the first one goes, then there will be a big scramble for the others," said Adam Giansiracusa, managing director for technology stocks at Frost Securities. Typically, DSL companies need to only lock up 3% - 4% of a market to generate positive cash flow. DSLN closed up 11/16 Friday at 3 7/16 on 2,364,000 shares traded. Good trading… Stockprowler |
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