tw telecom (NASDAQ:TWTC)

CAPS Rating: 4 out of 5

The Company is a provider of managed network solutions to a range of business customers and organizations throughout United States. It delivers data, dedicated Internet access, and local and long distance voice services to its customers.


Player Avatar ThunderCat02 (35.33) Submitted: 9/21/2006 3:55:27 PM : Outperform Start Price: $18.68 TWTC Score: +65.63

TWTC is another CLEC that has a strong position and shows great potential for growth over the next several years. The company operates in the enterprise business segment and they do not cater to smaller companies on the order of 250 or less. Recent acquisitions have given them some small "onesies" and "twosies" as the company might call them but their strategy has not changed to move down market into the smaller and medium sized business segment.

The company possesses exceptional fiber assets concentrated mostly in the eastern United States. However, given their recent acquisitions, the company has begun to expand its operational markets and footprint. As a telco provider, their asset portfolio should mean something and I believe the market is currently undervaluing those assets on a standalone basis.

To add to that, the company should see accelerated earnings over the next two years. The recent acquisition of Xspedius will be a major contributor to this growth.

All in all, they have a strong management team with solid experience, great fiber assets, and a strong competitive position.

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