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Technology Stocks : AT&T
T 25.79+0.5%3:23 PM EST
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To: Tony A. Matthews who wrote (3270)2/13/2000 12:37:00 PM
From: Peter Mokhiber  Read Replies (1) of 4298
 
A little history may help.
T traded at 53ish on the strike date 9-9 of LU and NCR distribution, and 38ish after on the date 9-22 the distribution. If you had sold T after the strike date and bought back after the distribution date you would have owned LU, NCR and made a 28% return on your T.

Now onto the Wireless distribution, should be about 1 share for each 10 T(a guess, Wireless revenues are about 10% total T revenue, with assets about 11%[22/197]) T has grown at 16% this year including Wireless. Wireless is growing at about 33%(I would like confirmation of my numbers) contributing contributing significantly to overall T growth.

The questions to be answered, how fast will T grow without Wireless? What will the market think of that growth rate?
Will the market lend a premium to Wireless growth rates and discount the base T growth rates?

If so Wireless may be a better hold/buy and T alone may not have the growth capabilities in the remaining components. Maybe the decision is to hold T until the strike date, sell the next day and buy all Wireless after the IPO. Remembering after the IPO LU could be bought for 32 and has split 2 since then. So even a 50-55 LU having held LU your cost basis would be approx. $8.

Any comments would be welcome
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