Fibernet (FTGX): Merriman Curhan Ford Initiates

Posted on December 15, 2006

We were pleased to see that Merriman initiated coverage of Fibernet Telecom (FTGX) this morning with a Buy rating and an $8.25 - $9.50 price target. We have not had a chance to review the report in detail, but we should mention that we think the analyst’s numbers are too low and that FTGX will hit the analyst’s 2008 numbers in 2007. Notably, the analyst’s free cash-flow numbers are absurdly low given that FTGX’s annualized FCF from the last quarter is already double the analyst’s 2007 numbers. Finally, there is little discussion on FTGX’s replacement value, which we value at over $10. Overall, the low-ball numbers should help propel FTGX shares higher in 2007, as management is able to exceed these estimates, as we expect.

Note: We own shares in FTGX, and first recommended them to paid subscribers at $4.30 per share. All ideas, opinions, and/or forecasts, expressed or implied
herein, are for informational purposes only and should not be construed
as a recommendation to invest, trade, and/or speculate in the markets.
Any investments, trades, and/or speculations made in light of the
ideas, opinions, and/or forecasts, expressed or implied herein, are
committed at your own risk, financial or otherwise.

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This site may include market analysis and we may own shares in the stocks mentioned in our reports. All ideas, opinions, and/or forecasts, expressed or implied herein, are for informational purposes only and should not be construed as a recommendation to invest, trade, and/or speculate in the markets. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise.