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Technology Stocks : Qwest Communications (Q) (formerly QWST)
Q 81.09+2.3%Nov 28 9:30 AM EST

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To: SecularBull who wrote (4339)6/23/1999 4:26:00 PM
From: Raymond Clutts  Read Replies (1) of 6846
 
I agree, I just bought 3000 more shares several days ago just after it dropped 10 points. These acquisitions will either serve to establish Qwest's status as an integrated national service a la WCOM or they will cause it to be bought out by Southern Bell. Either scenario should cause share price to appreciate significantly. Also whether Qwest or Global Crossing wins the bidding both face the same need to fill their pipes with paying subscribers and the quickest way to achieve that critical mass is by acquiring a RBOC.

Eat or be eaten. That motivates the Qwest corporate hierarchy to acquire together with the certain knowledge that their newly completed system will not meet earnings expectations unless it's quickly filled with paying subscribers.

The capacity glut isn't here yet but with the number and volume of fiber facilities that will be coming on line, it makes sense to become an integrated provider rather than risk becoming a commodity conduit.

OK, I'm not delighted with the degree to which the market has discounted the share price but I think that this is a very realistic corporate evolutionary progression.
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