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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: Jerry Olson who wrote (74050)	12/2/1999 2:19:00 PM
From: Rose K	Read Replies (1) of 120523

Hi Jerry!! Here's the latest "noise" re: HLTH Alliances bolster News Corp By FINOLA BURKE 3dec99 SHARES in News Corporation hit a four-month high to close at $14.12 yesterday amid revaluations of the stock by leading media analysts. Macquarie Equities and house broker Merrill Lynch have both upgraded their recommendations on News Corp ahead of it finalising its stakes in Internet health portal Healtheon/Web MD and Germany's Kirch Pay TV. The revaluations also take into account the recent deal between Star TV and Cable & Wireless's Hong Kong Telecom. Macquarie also saw hidden value in the investment News Limited ? publisher of The Australian - recently made in One.Tel and that company's plans to secure a mobile phone licence in the UK. "If One.Tel succeeds, News Corp stands to make a tenfold return on its investment," Macquarie analysts Alex Pollak and UK-based Phil King said in a note to clients yesterday. "If it fails, the company writes off 10c a share." Mr Pollak and Mr King said should One.Tel succeed in securing the third-generation licence, News Corp would add value by bundling BSkyB and its newspaper content on One.Tel's WAP mobile phones. They valued News Corp at up to $19.62 a share and recharged their recommendation to a short-term market outperform, from market perform. Merrill Lynch's US-based analyst Jessica Reif Cohen put a 12-month price target of $US50 on the company's American depositary receipts, which jumped to close up $US1.50 at $US35.75 after her report was released on Wednesday in New York. News Corp's shares closed 62c stronger at $14.12 and its preferred stock gained 53c to close at $12.72. Other media analysts last night were also looking at their valuations on News Corp's associated companies despite disappointing autumn television ratings from the company's 83 per cent owned Fox Broadcasting in the US. Fox's performance, down 10 per cent on the previous year, is not as bad as some analysts had feared earlier in the ratings season. Analysts contacted by The Australian said they would not be changing their full-year profit forecasts from the current range of $1.39 billion to $1.56 billion. Several said they had yet to factor in the $US1.03 billion Kirch Pay TV stock acquisition, which is slated to be signed in Europe today, or the Healtheon/Web MD stake, which is still being finalised. Ms Reif Cohen estimated News Corp "has created an incremental $US1.5 billion of value despite relatively insignificant cash outlay" on its new acquisitions. Analysts also said they were yet to establish what value should be ascribed to Softbank's alliance with Healtheon/WebMD in Japan, one of the more consumer-aware nations for healthcare. That alliance, announced on Wednesday, is being viewed as positive for News Corp's soon-to-be finalised 10 per cent stake in the Internet health giant." :o) Rose

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