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Technology Stocks : Qwest Communications (Q) (formerly QWST)
Q 80.29+0.7%3:59 PM EST

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To: MangoBoy who wrote (1306)5/21/1998 1:49:00 AM
From: Phil Jacobson   of 6846
 
I gotta think this AT&T confusion will help QWST get close to $40 tomorrow. It just about kills any chance of the gov't going after the deals with US West and Ameritech. Meanwhile, QWST is way ahead of the pack in cutting these deals.

I also don't think this story is bad at all competitively. AT&T has always had a hard time in the acquisition game since such a high percentage of the US population is still signed up with them. Think about it, it's tough for a sales channel when over 50% of a prospect list get dropped immediately because most people on the list are already a customer. Translation - lower close ratio, less efficient sales channel. A QWST deal is golden for any sales force that is given a compelling sales message...almost nobody is a QWST customer today so everyone passes the first test in becoming a qualified lead. As long as the sales message works the LECs will be lining up to sell QWST for no other reason IMO. Besides, who wants another sales pitch about AT&T, MCI, or Sprint anyway? QWest is a fresh story.

Phil
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