JLSegal
18 years ago
NASDAQ Announces the Annual Re-ranking of the NASDAQ-100
http://www.nasdaq.com/newsroom/news/pr2006/ne_section06_143.stm
New York, NY, December 8, 2006 — The Nasdaq Stock Market, Inc. (NASDAQ®; NASDAQ:NDAQ) announced today the annual re-ranking of the NASDAQ-100 Index®, effective with the market open on Monday, December 18, 2006.
“The NASDAQ-100 Index is one of the world’s most recognized benchmarks that owes this distinction to its components: companies that are leaders in a diverse range of industries,” said NASDAQ Executive Vice President John L. Jacobs. “The annual re-ranking of the NASDAQ-100 Index is an objective, transparent process that culminates in the formation of a select group of companies in a global benchmark that is the basis of dozens of licensed innovative investment products throughout the world.”
The following 3 issues will be added to the NASDAQ-100 Index: Level 3 Communications Inc. (NASDAQ:LVLT), Infosys Technologies Ltd. (NASDAQ:INFY), and Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)............
JLSegal
18 years ago
May 16, 2006 BWNG/AOL news:
(this story never appeared under BWNG ticker symbol)
May 16, 2006 11:13 AM US Eastern Timezone
AOL Launches AIM Phoneline
DULLES, Va.--(BUSINESS WIRE)--May 16, 2006--AOL
New Service Offers a Free, Local Phone Number and Voicemail to AIM Users
Leading Industry Providers - Broadwing Communications, Telchemy and Plantronics - Selected to Support AIM Phoneline Service
AOL today announced the launch of the AIM Phoneline service, a new offering that gives AIM users a free, local phone number to receive unlimited incoming calls online through the AIM service as well as free online voicemail.
AIM(R) Phoneline is a new communications enhancement to the AIM(R) service, the leading instant messaging service in the United States, which includes the widely-used Buddy List(R) feature, as well as free email, mobile text messaging, voice and streaming video services. With this launch, AOL is also kicking off the 10th anniversary of the Buddy List feature, an historic product innovation that revolutionized instant messaging and real-time communications, and helped millions to organize their online community networks. An interactive timeline and video commemorating the history of the AIM service and the Buddy List feature is available at www.AIM.com/birthday.
With the AIM Phoneline service, AIM users - 18 years of age or older - can get a free, local phone number to use however they like. This number provides always-on voicemail delivered to the user's AIM Mail inbox, and when users are signed into the AIM service, they can screen incoming calls with Caller ID, answer calls and talk as long as they'd like. Users can also enable the service to send a mobile alert via cell phone to notify them whenever they have new voicemail.
http://messages.yahoo.com/bbs?action=m&board=1609339595&tid=bwng&sid=1609339595&mid=...
Learning2vest
19 years ago
Scovillez,
Fuggeddabout where it came from and when IMO. Focus on what it is talking about, and then decide if you believe it. If you do, then it's time to get busy buying BWNG with both hands.
FWIW, that piece actually restates some of what looks so good about BWNG to this interested observer. Beware, and do your own DD. If you share what you find here, good chance both of us will learn something.
ScovilleUnits
19 years ago
Learning2vest,
I stumbled onto the following over on Yahoo. Any idea where it came from or how old it is? It seems to tie into the Hutchinson scenario.
------------------------------------------------------------
Re: BWNG / HGC -Korean Business Journal
by: optical_cannon (28/Providence)
Long-Term Sentiment: Strong Buy 03/27/06 02:13 pm
Msg: 153239 of 153381
Korean Business Journal
London - Following the success of its inter-carrier Ethernet expansion in South Korea and Taiwan, HGC has established interconnections with Broadwing to extend the reach of this Pan Asian VPLS network into the United States via Broadwing's new Converged Services Network.
The reciprocal relationship enables international customers to connect multipoint Ethernet services from locations served in Asia by HGC, its Asian partners and others, with multipoint Ethernet circuits in the United States. The network, driven by Virtual Private LAN Service (VPLS) technology, offers users multipoint international Ethernet services and enables enterprises to create a global Ethernet network in a simple, flexible and cost-effective manner.
Broadwing and HGC have already validated the demand for the new Trans-Pacific Ethernet solution by completing a 6Mbps, Taiwan to California, Ethernet circuit for a leading Taiwanese manufacturer of computer peripherals. Broadwing and HGC installed the end-user connection only days after the primary interconnection was completed and it has operated to the customer's satisfaction ever since.
HGC and their partners have deployed metro Ethernet technology over their state-of-the-art networks within Asia to create a Pan-Asian VPLS network. The addition of Broadwing to the provider mix extends this service into a multi-continental WAN, spanning the Pacific Ocean to provide a compelling option for international business solutions. The service is delivered to user-enterprises as a "plug-and-play" Ethernet interface, meaning no additional investment in hardware equipment is required in Asia or America.
"We are thrilled to be working with HGC to extend the reach of our Converged Services Network into Asia," said Scott Widham, president of sales and marketing for Broadwing. "Broadwing is the only facilities-based, U.S. service provider with the ability to offer Ethernet access to both Layer 2 and Layer 3 VPLS and MPLS VPNs across a common infrastructure, and HGC is a proven leader in deploying Ethernet VPNs in Asia, so it makes a great deal of sense that we would forge this relationship."
"HGC has been a leader in propelling the development of the international VPLS-based Ethernet network solutions in Asia. We are pleased to extend our service reach to the US via a partnership with Broadwing. It further strengthens our position in the global telecommunications arena," said Andrew Kwok, Vice President - International Business of HGC. "We are extremely impressed with Broadwing's flexibility in extending Ethernet in the U.S. Even in locations where Ethernet is not available in the last mile, Broadwing has the capability to interwork services across Frame Relay, ATM, TDM and even DSL to provide ubiquitous network access."
Learning2vest
19 years ago
Found this from Forbes on BWNG's new deep pockets investor;
"...John de Mol , 47
Source: TV
Net Worth: $1 bil plus
Country of citizenship: Netherlands
A co-founder of Endemol, a television production outfit behind big reality
show hits like Big Brother and Fear Factor. Spanish telecom giant Telefonica
bought Endemol three years ago in a deal valued at $5.3 billion.
Today De Mol is chief creative officer of his own media development firm,
actively involved in scouting and producing show ideas. While his TV
production company continues to perform well, most of his recent success has
come from investment activities .
In 2001, the most recent year financial results of the company were
released, Endemol posted profits of $163 million on $987 million in revenue,
up 51% and 63% respectively....
............................................................
My comment;
de Mol made his fortune in the television production and distribution biz. He has to know that new applications like HDTV and video on demand are going to create huge growth in the demand for high quality long haul telecom services.
Broadwing has the highest quality network for those kinds of applications, and plenty of excess capacity to sell. Guessing he can see the growth in revenues and profits ahead at BWNG.
Hope he is right because that is why I'm invested!
The Global Crossing rumours started back when Broadwing announced the "Pacific and West" partnership deal with Hutchison telecom a few weeks ago.
That deal gave Broadwing network access to the Asia Pacific markets and everybody began to guess when, who, and how Broadwing would link up for the European markets.
The big enterprise customers that Broadwing targets are all global operations so they want their telecom service providers to offer and manage a "seamless" network. If Broadwing can partner on favorable terms(or merge with/acquire somebody's European network operation), they would eliminate the costs of paying somebody else to use those connections.
eastunder
19 years ago
I find it real interesting that the first PP was at 10 and the second was at 12. Too me that says someone didn't care if he paid more then the other...or maybe it's all the same group? And that was the plan to begin with.
Several things....who is this fellow?
Monday , March 20, 2006 15:40 ET
Boston, Mar 20, 2006 (MidnightTrader via COMTEX) -- Broadwing (BWNG) rises on news Dutch media mogul John de Mol now owns a 5.03% stake, according to a SEC filing.
The calculation was based on 76.17 million ordinary shares of BWNG outstanding as of Feb. 28, according to the filing. The document was jointly filed with the SEC on Friday by de Mol and his investment firms, Talpa Beheer BV and Talpa Capital BV. De Mol told the SEC he acquired the shares between $6.99 and $12.65 each during a 60-day period ending on March 8.
Price: 14.73, Change: +2.03, Percent Change: +15.98
And how does this benefit us in any way should it take place?
--Global Crossing Soars to new 52-Wk High on Rumor of Merger with Broadwing
Monday , March 20, 2006 15:43 ET
J
Learning2vest
19 years ago
Huber is raising cash(see news posted below).
Broadwing has ~$100 mil of cash on hand, a $75 mil credit facility, and just added another $70 mil in a private placement.
Wonder why? Is he planning to BUY a European network operation to complement the Hutchison partnership on the Asia/Pacific side?
The $1/4 billion cash he now has would make a nice down payment on something like that. Use debt to finance the balance, and BWNG would have a global network operation for just a 10% dilution.
.............................................................
Press Release Source: Broadwing Corporation
Broadwing Corporation Announces $74.0 Million Private Placement of Common
Stock
Monday March 13, 7:31 am ET
AUSTIN, Texas--(BUSINESS WIRE)--March 13, 2006--Broadwing Corporation
(NASDAQ: BWNG - News) today announced that it has entered into a definitive
agreement with certain institutional investors with respect to the private
placement of 7,400,000 shares of its common stock at a purchase price of
$10.00 per share, for gross proceeds of $74.0 million.
The net proceeds to Broadwing will be approximately $70.1 million. The
Company intends to use the net proceeds for general corporate purposes.
The shares of common stock have not been registered under the Securities Act
of 1933, as amended, and may not be offered or sold in the United States
absent a registration statement or exemption from registration.
This notice is issued pursuant to Rule 135c under the Securities Act of 1933
and shall not constitute an offer to sell or the solicitation of an offer to
buy, nor shall there be any sale of these securities in any state in which
such offer, solicitation or sale would be unlawful prior to the registration
or qualification under the securities laws of any such state.
Learning2vest
19 years ago
Here is a fairly accurate transcript of Cramer's remarks about Broadwing on the March 2nd, '06 edition of the CNBC "Mad Money" show(sure looks like he opened some eyes):
"Under the Radar"
I've got a stock for you that's, frankly, broken so many hearts; lost so
many people so much money.
It's flatlined for so long that everybody's forgotten that they ever had any
potential. (the house of pain)
But this company has turned itself around. (house of pleasure) It's going to
make some people a lot of money.
and the stock, ladies and gentlemen, is Broadwing (BWNG).
I can't believe that Cramer just recommended Broadwing, and only Cramer
still cares about it; only Cramer wants this stock to make you money.
Let's go in the wayback machine - 5 years. Broadwing had a vision. It was a
vision for an all-optical network that could be used to transmit voice and
data everywhere!
Oh, what did these guys do at Broadwing? They spent a fortune building the
network. And then, the stock soared to $1000 (reverse-split adjusted).
Even if you've never heard of Broadwing, you know what happened next.
Naturally, Broadwing almost went bankrupt building the darn thing and the
stock sank all the way to $3 a share.
Just look at this chart (5.5 year chart shown), will ya? That is a chart of
heartbreak; that is a chart of head cut off; that is a veritable train
wreck!
Obviously, with a chart like that, I've hated this company for many years.
They were just building this network for years, and leaking money all over
the place. How could I, Cramer, like a stock like that?
But, you know what? Things change; things can get better.
Now, Broadwing is finally finished building their optical network. It's up
and running and Broadwing should have positive cash flow next year.
Already, the stock has $1.50 in cash per share, and it's only trading at $9,
give or take, but nobody seems to notice! Except for Cramer.
Broadwing is finally breaking out, and the only people who know that are the
people who work there, and Cramer!
Even the worst, most broken company, can still turn itself around, and you
can catch that turnaround, as long as you know what to look for.
I think Broadwing is now a HUGE BUY!! You cannot allow yourself to become
inflexible just because the stock came screamin' down 1000 points, and then
flatlined for a few years. You become inflexible - you miss opportunities,
and opportunity is what this game is all about.
I think you want some cold, hard evidence before you pronounce something as
broken as the Broadwing to be alive and kicking.
The positive cash flow is good; cash on hand is good. But that's far, far
from enough. Okay, so they're done with their optical network. You still
need more than that before you pull the trigger on something as decimated as
Broadwing.
You can really see the turnaround happening in the numbers. For the 4th
straight quarter, Broadwing improved their cash flow burn rate, so they're
eating much less money. Last quarter was the first quarter in 5 years where
the earnings before interest, tax and depreciation (EBITDA), the first time
that it has EVER!! broke even.
Broadwing just made their last convertible debt payment, and now the stock
is almost debt-free.
If you want to know why the stock has already gone from $4 bucks to almost
$9 and change in the past 10 months - all of that great stuff is why.
But I wasn't going to recommend Broadwing because they burned less cash over
3 quarters. Hey, that's damning with faint praise. I needed more weight
behind the evidence before I was going to put my neck out on the line.
But now the numbers add up. With $1.50 in cash per share, the company can go
through 10 quarters burning money at the present rate, but they'll be free
cash flow positive within the next year. So it looks like they're kind of
set with the moolah.
Their voice revenues are down, but their data and broadband group grew 15%
last quarter. Broadwing has been seeing increased enterprise demand for its
product because they spent a fortune building this best-in-class optical
network. They almost went under but, pretty soon, Broadwing should be
getting out of the red. That is amazing; I can't believe it myself.
The bottom line!: I think you should be flexible and buy some Broadwing! And
I need you to do it now before everybody else starts yapping their darn fool
heads off about the turnaround, and you will realize that missed the
boat!("mo back", load up the truck "Buy, Buy Buy" on BWNG)
ScovilleUnits
19 years ago
Anyone take "Next Inning"?
And if so, would you...could you...copy/paste what they had to say about BWNG?
http://www.knobias.com/individual/public/quote.htm
---------------------------------------------------------
Next Inning Technology Research Updates Outlooks on Vitesse, Broadwing, Brightpoint, and Intel
Thursday , February 09, 2006 10:18 ET
PRINCETON, N.J., Feb 09, 2006 /PRNewswire via COMTEX/ -- Next Inning Technology Research (http://www.nextinning.com), a subscription service focused on semiconductor and technology stocks, announced that it has published reports updating its outlooks on Vitesse (Nasdaq: VTSS), Broadwing (Nasdaq: BWNG), Brightpoint (Nasdaq: CELL), and Intel (Nasdaq: INTC).
kron7777
19 years ago
I don't think Huber wants a buyout. Not at these prices anyway.
So I don't put too much thinking about why he mentioned that number. Maybe he wanted to brag. Or he wanted to enlighten Wall Street as to how undervalued the stock is (looks like someone paid attention). Or maybe he had nothing else to say.
It doesn't matter.
You will hear that nobody cares about replacement values and it is market that decides what it worths. The problem with this argument is that market is irrational: the same network was worth $100 mln two years ago and will be worth $10B if people realize there is so much capacity and the demand is unlimited.
Take oil for example: say you owned an oil fields with 1 billion barrels of oil underground with cost of extraction of $10. It is year 2000 and oil is trading at $10. So you won't make any profits if you start pumping. And all the talking heads tell you that oil is never going to trade above $12. Market would value those fields at , say, $2B. Fast forward 5 years: oil is at $60 and all the same talking heads predict it will only go up. So market values the same fields at $60B.
Same with Broadwing. It was impossible to make money up until now so the network was worth a little. If the demand exploads (and it will) , prices will improve and the network will be a money making monster machine.
Also you might hear that equipment is cheap now and if someone want to build the same network it will costs only $200 mln.
What they don't realize that expertise is priceless. They invested millions of hours to fine tune the network and make it the most efficient one. Yes, the equipment might cost $200 mln, but the performance of such network won't be cost effective and problems will occur constantly. And after they spend $200 mln for equipment and installation and $5 bln for millions and millions of hours of work to make it work, they will have the same network. Like buying an old car for $500 and then spending every weekend fixing it.
I don't know percentages of lit fiber, but it is very high. Highest in the industry. So if they need to provide extra badnwidth , they won't have to lit anything for some time.
I think that 4% you mentioned is not percentage of lit fiber, but percentage of utilization of the network. Maybe it is 10% now, I dunno. They can increase revenues by 1000% and most of that money will go directly to the bottom line. You can calculate what the share price will be if that happens.
I can give you a hint: if they grow revenues by 100%, they will be earning some $300-500 mln a year. $5-8 per share. Which will translate into $200-$300 share price.
And if they will grow revenues by 15% annually, it is just 5 years away.
Learning2vest
19 years ago
eastunder,
Good chance the "urban legend" you are thinking about involved Cisco offering to buy the Corvis equipment biz for mega bucks way back when. Who knows if there was any substance to that story? Whatever,... things have changed. Corvis has morphed into a telecom carrier operator called Broadwing that appears to be kicking some serious butt with it's all optical Corvis powered network.
Every other carrier, and anybody who wants to be one, has to be a potential buyer the way I see things. Top class broadband communications services based on leading edge tech are just beginning to become supply constrained as high value new applications requiring their capabilities emerge and drive demand. Distribution of live HD TV sports is one recent example, and high security private networks for business enterprises and govt agencies are another. Valuations go up when that happens, and Broadwing certainly appears to be out front with the "right stuff" for what the telecom future holds.
Let's see what the 4th qtr numbers and management have to say when Broadwing reports on Feb 23rd. IMO Doc Huber has no interest in selling his Broadwing project to anybody at any proce right now. I think it's more likely that he will be the one who buys somebody else and drives ahead to create a global network offering superior services at premium prices.
Re charts - Gotta confess that all this nitwit can see on charts is where "the market" has BEEN. IMHO charts are a great way to see how you are doing against the "opposition". My objective is to "buy low" and "sell high". Best I can understand, it is the same "market" that is painting those charts that I have to beat in order to do that, so you better know that I watch them. It's what I do in spite of them that butters my bread!
Buying BWNG last summer when the charts screamed "DOOM!" was just one example of what I'm saying. Fundamentals point the way, and charts help call the timing in my game. My objective is to buy when the charts are saying "stay away" and to sell when those charts are still screaming "ever higher".
Learning2vest
19 years ago
eastunder(Sydney?),
My first thought after hearing Doc Huber declare his estimate of a $5.5 bil "replacement value" on Broadwing was that he was communicating his "minimum bid" requirement for anybody interested in opening a serious "buy out" negotiation.
After noodling on things awhile, my conviction moved on to consideration of another possibility, something that would actually ride incognito on that first assumption.
Huber has gotten away with playing "outside the general rules" in a lot of ways, but undervaluing and over-depreciating the Broadwing assets could become a drag if he needs to "pony up" for a big loan at reasonable rates.
What to do? Well, putting a bigger number out there can't hurt IMO. I think he was seeking to do a couple of things that would play well in his game. Nudge the BWNG share value closer to reality and clarify the true asset value at the same time.
Those comments are from a "loan value" perspective. My very limited experience leads me to think that the stock market's valuation of an equity works in many very different and mysterious ways. The P/E trend is a good place to start, but things seem to go off in every direction from there.
You asked about available "unlit" capacity to sell, but all this interested observer can say is that there appears to be plenty of high margin incremental revenue potential ahead at Broadwing. How much, I have no clue.
One "common sense" thought that I had after watching streets get torn up to bury fiber just about everywhere in recent years was, "If somebody is spending the money to rip up every Main Street around the globe, I sure hope they are stuffing all the fiber optic cable they will EVER need down into those ugly ditches before covering them over."
Seeing a few dimwit yokels acting out their version of the "Wall Street Analyst" role by attempting to use the percent of that fiber utilized to say anything else just registers "Tilt!, Dip Stick" on my feeble mind.
There is plenty of excess capacity in the ground IMO.
eastunder
19 years ago
L2V,
I like your thinking. Get's me thinking.
At the Needham conference last month Broadwing's CEO Doc Huber publicly declared for the first time that his estimate of a reasonable "replacement value" for the company's network is $5.5 billion(that works out to be something like $75/share!). Then he went on to say that the Broadwing network is "top class fiber and equipment in "pristeen" condition,... the ONLY network capable of delivering the kind of telecom services customers want and need today."
Explain that. What does he mean by "replacement value"? That to me speaks of a buyout. And can we corrolate replacement value to an asummed pps thru a mathmatical equation? Is that often done to get an estimated pps? I'm a little confused here, so please forgive me and try to explain that to someone who is a little dim in a way she can understand. :)
I know, although it was quite some time ago, that out of all the layed fiber, only about 4% was lit. How does that fit into the whole picture? Is this fiber that has been placed and not in service or fiber that needs to be layed? Or am I thinking of the wrong thing?
J
Learning2vest
19 years ago
If we play "connect the dots", my personal theory after seeing Doc Huber resign his Broadwing CEO position goes something like the following:
* We have seen several top execs depart Broadwing and not be replaced recently. The departures of Jim Bannetine, president of the product division and John Mcleod, COO of Broadwing make Huber's departure from the CEO position just the most recent. The key point is that there are LOT's of vacant offices on the "top deck" at Broadwing right now. Hold that thought.
* We know that Broadwing opened a $75 million line of credit last October(was that just "opening an account" for what Huber really intends to ask for in the future?), and also that the firm will extinquish all current debts later this month.
* The trendlines in all of Broadwing's fundamentals point to the firm being very close to reporting positive EBITDA, followed by net profits, and then positive cash flow in the next few quarters. Top line revenues are growing as costs come down and capex appears to be under control. Net bottom line of that scenario: Broadwing had some mighty strong credit credentials coming into focus right now.
* Broadwing just announced a MAJOR partnership agreement with Hutchison Global to effectively link Broadwing with all points "Pacific and West" including China and the Pacific Rim(Yowser! We hear a lot of talk about "making a China connection". Well,... it's gonna be mighty tough to do that any better than what Broadwing just put in place).
* With network partnerships in place for Canada, South America, and now "Pacific West", we can be absolutely certain that Broadwing is well down the path to selecting, merging with, or acquiring an "Atlantic East" network extention. (Hold that thought for just a moment)
* At the Needham conference last month Broadwing's CEO Doc Huber publicly declared for the first time that his estimate of a reasonable "replacement value" for the company's network is $5.5 billion(that works out to be something like $75/share!). Then he went on to say that the Broadwing network is "top class fiber and equipment in "pristeen" condition,... the ONLY network capable of delivering the kind of telecom services customers want and need today."
There is no question that was a heck of sales pitch,... but which audience was our fearless leader leader talking to? Was it just the investment community sitting in front of him,... the telecom big boys with pockets deep enough to pay his "asking price" in a buyout, OR,....was it directed toward the big lenders he might be courting to finance his next acquistion?
Time to connect the "dots" and declare your answer.
I'll go first. My bet is Doc Huber was pitching to the LENDERS at the Needham conference because he needs them to finance his next Broadwing acquistion. I think there is a good chance Doc Huber wants to BUY/MERGE Broadwing with an "Atlantic and East" network operator that has the "right stuff" to fill out his global network vision.
I'm guessing that Huber has opened up all of those "top deck" offices at Broadwing to accommodate the key executives at an "Atlantic and East" partner that he is currently courting. Stand by for what comes next. The 4th qtr results on Feb 23rd, annoucement of another major acquistion, or something else. Whatever, it's not going to be boring around here in the coming months.
Learning2vest
19 years ago
Got interested in something called "Corvis" before it was launched as an over hyped "CORV" IPO right in the middle of that crazy late 90's market bubble. Watched in amazement from the sidelines as the CORV valuation blasted up, up, and away in the days after that IPO(to what would be ~$1,000/share on the BWNG we can buy today!). That was then, and a whole lot of water has gone under the bridge since then.
The "all optical" tech breakthru that Corvis pioneered back then is STILL leading edge, and the firm has morphed into a vertically integrated equipment developer/network operator by acquiring one of the few customers to buy and install that new "OOO" gear.
Corvis bought out the Broadwing network built by Cinncinatti Bell, and took that name when the transaction closed. Other acquistions to complement that network have followed, along with what amounted to an effective 1 for 10 reverse split.
The most compelling thing about BWNG today is where the fundamentals appear to be headed. It has been growing revenues and reducing costs for 8 straight quarters producing an EBITDA trend that should turn net positive very soon. In addition, BWNG has been downsizing overhead and depreciating it's assets so fast that that very little is left to write off against future revenues, AND,...the company will be DEBT FREE on Feb 20, 2006!
That is pretty amazing when we consider the CEO's recent comments saying that he estimates the replacement cost on BWNG's network at $5.5 billion(i.e., about $75/share).
That scenario sounds way too good to be true, so I'm opening this discussion to see what, if anything, others have to say.