Corvis Mania Continues
Even though the company still has zero earnings to report, and losses grew by nearly $100 million in the last quarter, analysts remain bullish about its future. Two days ago, CIBC Worldwide Markets issued a BUY on the stock, predicting that it would hit $125 per share within 18 months (at press time it was at 85.5).
More significant news is expected from the company when it announces third-quarter results in October. That’s when it's expected to report its first revenues -- including cash coming in from three big deals that have already been announced with Qwest Communications International Inc. (Nasdaq: Q), Williams Communications Group (NYSE: WCG), and Broadwing Inc. (NYSE: BRW).
CIBC expects earnings for Q3 to be $8.5 million and yearend revenue for 2000 to be about $33.5 million. Revenue for the following year is expected to grow to about $270 million, according to CIBC. And despite heavy losses, the analyst firm expects cash flow to turn positive in 2002.
-- Marguerite Reardon, senior editor, Light Reading, http://www.lightreading.com