|[RESEARCH ALERT-Goldman on Metromedia Fiber]|
NEW YORK, Sept 26 (Reuters) - Goldman Sachs said on Tuesday it believes the stock weakness in Metromedia Fiber Networks Inc. (NasdaqNM:MFNX - news) has created ``an excellent buying opportunity.''
-- said Metromedia Fiber's stock is down 47 percent for the month.
-- said the company's fundamentals are ``intact,'' and the company's management remains ``very comfortable'' with Wall Street's third-quarter expectations.
-- said it expects the company to post third-quarter revenues of $45 million, an EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $54 million, and a net loss of $140.3 million.
-- said Metromedia's announcement on Tuesday that it will open nine Internet Service Exchange (ISX) facilities in the U.S. and Europe by year-end is part of the company's existing capital plan and does not require additional funding.
-- said believes Metromedia's stock drop is due to investors selling weak stocks in an effort to create a loss for tax purposes that would offset their gains in other stocks.
-- said believe investors seeking to reduce their holding in competitive local exchange carriers, or CLECs, also are selling Metromedia Fiber.
-- said believes that after Oct. 31, which is ``year end for mutual funds,'' this selling pressure should ease.
-- said ``these technical factors create an excellent buying opportunity now.''
-- shares of Metromedia hit an intraday low of $20-1/8, but recovered somewhat to trade at $22, down $1-13/16, in afternoon trading on Nasdaq. The stock is off 8.3 percent since January, and down about 58 percent since its 52-week high of 51-7/8 in March.