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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 163.33-1.0%Nov 25 3:59 PM EST

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To: cfoe who wrote (440)8/2/1999 8:53:00 PM
From: Art Bechhoefer  Read Replies (1) of 13582
 
That's an accurate description of what AT&T is doing. Unfortunately, they can keep pushing a technically outmoded investment because of their market share, and even more important, because they can borrow large amounts of capital at interest rates well below what some younger, smaller company would be able to get. Just compare the credit rating of AT&T with QUALCOMM, which is no small company, and which generates a good deal of free cash flow, and you'll see how much better off AT&T is treated when it goes to the bank.
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