StocksAtBottom.com announces Investment Opinion on Covad.Business Editors NOTE TO EDITORS: The following is an investment opinion issued by StocksAtBottom.com WESTPORT, Conn.--(BUSINESS WIRE)--Jan. 29, 2002 StocksAtBottom.com today announced it has released its latest research on Covad (COVD COVD College of Optometrists in Vision Development COVD Covad Communications Group (stock symbol) ). StocksAtBottom.com has reiterated its BUY recommendation on COVD, trading at $2.16 per share as its number one recommendation of 2002. SAB initially liked the stock at 50 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. in 2001. We believe it is a more compelling buy today at $2.16, than it was at 50 cents. Covad has only given away 15% of its equity in return for $1.4 billion of debt forgiveness. Eliminating the debt eliminates $1 billion in future interest payments. They are also the first company in bankruptcy history to double their revenue base while in bankruptcy. We believe Covad will be the best stock to come out of bankruptcy since Interstate Department Stores came out as ToysRUs 25 years ago. SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. Communications has given them the equivalent of $150 million cash to help Covad grow. They now have the funding necessary until they achieve positive cash flow in 2003. Covad's previous $100 million per quarter burn rate is now down to $25 million per quarter. 99% of the professional money managers can not buy the stock until it goes through $5 per share. The trip from $5 to $10 and higher will be easier than the trip to $5 as institutions fight for ownership in the stock. SAB believes that Covad will be as big a stock The Sports Authority was the previous year. StocksAtBottom.com believes that Covad will trade between $10 and $20 per share by Christmas of 2002. StocksAtBottom.com also has opinions on Microsoft, General Electric(GE), Oracle Systems(ORCL ORCL Oracle (stock symbol) ), Cisco(CSCO CSCO Cisco Systems Incorporated (stock symbol) CSCO Chief Supply Chain Officer ), Disney(DIS), American Express(AXP The brand name Digital gave to its first family of Alpha-based computers. In 1998, Digital was acquired by Compaq. See Alpha. ), AAR Corp.(AIR), Intel(INTC INTC Intel (NASDAQ symbol) INTC Intercept INTC Interrupt Controller ), Merck(MRK), Sun Microsystems(SUNW SUNW Sun Microsystems, Inc (former stock symbol; now JAVA) SUNW Stanford University Network Workstation (Sun Microsystems, Inc) ), Tyco(TYC), AOL(AOL), Dell Computer(Dell), Gateway(GTW), Compaq Computer(CPQ), Exxon(XOM), Home Depot(HD), Celanese(CZ), Circuit City(CC), and Coca Cola(KO). About these ideas: StocksAtBottom.com is a web-based subscription stock recommendation service. All information presented here is the opinion of StocksAtBottom.com. We do not vouch for its accuracy. We can not guarantee the performance of any stocks discussed, or your performance. We have never owned the shares of any stock that we have publicly discussed. All ideas are highly liquid, prominent companies. We do not receive compensation from any company directly or indirectly that we talk about. |
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