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Metricom shares on a roll

2 min read

Metricom shares rallied up another 25 percent Tuesday after announcing it will roll out its Ricochet wireless service to customers in Denver and Detroit next week.

On Monday, the stock shot up more than 40 percent after market researcher the Aberdeen Group hailed its 128 kbps service for enterprise customers.

Metricom (Nasdaq: MCOM) shares were up $3.13 to $15.69 Tuesday afternoon.

Its shares fell to a 52-week low of $5.63 in November after peaking at $109.50 in January.

By adding Detroit and Denver, Metricom’s Ricochet service is now available in 14 metropolitan areas throughout the U.S.

“As an emerging hub for broadband, Denver represents a dense concentration of mobile professionals who have come to expect high-speed access but can't get it without being wired to a wall,” said COO Glen Estell in a prepared release. “Meanwhile Detroit, with its long history of automotive achievement, is the birthplace of American innovation.”

In Monday’s report on Metricom, the Aberdeen Group gave the Ricochet 128 kbps service rave reviews.

“Ricochet provides a return on investment not available through today's competing wireless data solutions,” the report said. “It encourages user productivity during traditionally disconnected “downtime” periods, while offering the enterprise clear, predictable deployment costs.”

Last quarter, Metricom posted a loss of $54.5 million, or $1.77 a share, on sales of $3.9 million, down from sales of $4.8 million in the year-ago quarter.

First Call Corp. consensus expects Metricom to lose $3.81 a share in the fourth quarter and $19.84 a share in fiscal 2001.

All eight analysts following the stock rate it either a “buy” or “strong buy.”