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Technology Stocks : USSB

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To: Ken Conaway who wrote ()5/1/1997 7:41:00 PM
From: Mister5By5   of 62
This thread is dead. Isn't anyone else out there optimistic about USSB? Revenues for the last quarter were $99.2 million from $57.0 million in the same period of fiscal 1996. Plus, during the quarter, paying subscribers grew by more than 158,000 to 1,378,000. The average customer spends about $25 per month.

The customer base should only get larger, and operating costs should remain relatively fixed. There are only 3 potential competitors (just 2, if the Echostar/News Corp merger holds up).

Consider a conservative scenario where the company adds 200,000 customers for each of the next 4 quarters. The first group of 200,000 would increase revenue by $60 million this year, the next group by $45 million, the next group by $30 million, and the last group by $15 million. That's $150 million, or nearly a 50% increase in revenues in 1 year.

If DBS continues to steal customers away from cable (a strong industry trend), we should see even faster growth. At 3.5 million customers (a drop in the cable TV bucket) this is a billion dollar company with very small fixed operating costs. The stock could skyrocket like AOL did in 1995.

Cheap, cheap, cheap at $10 a share!

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