Slider, Big Bull, Jim P. and Q ... good posts all! Count me as one who is appreciative of the contributions you folks make to the board. The price of admission is well worth the opportunity to be able to communicate with you folks. Thank you!
I hope you don't mind if I go off topic a little here, since it is the weekend and it's usually slow around here on weekends.
Slider, this off topic post is the result of your insights and contributions.
WHAT SEPARATES THE MEN FROM THE BOYS IN WEB-HOSTING SERVICES, ONE OF THE INTERNET'S FASTEST GROWING MARKETS?
This was the leading paragraph in a story about WCOM in this past Thursday's edition of Investors Business Daily.
WCOM says the answer is it's fat communications pipes. The company owns the largest Internet backbone - or high-speed fiber-optic lines that move data globally. Because they own high-speed access and a global network, they are in position to do hosting as good or better than anyone else.
Demand for really high-capacity hosting and co-location is going to explode as more Web sites add multimedia content. WCOM can throw as much bandwidth at it as necessary. WCOM provides space, hookups to its long-distance network, and network bandwidth on demand.
Small companies pay about $1,000 a month for Web-hosting services, midsize firms about $15,000 and large companies about $125,000.
On April 13, Morgan Stanley stated that WCOM, in their view, is the best play on the exponential growth of the Internet among the large established telecom players.
Earnings Growth - The 1999 EPS of $1.33 represents roughly 200% growth over 1998. For 2000, MWD is looking for $1.87, a 43% increase over 1999.
Additionally, all of the senior executives have substantial amounts of their net worth invested in the company.
Their price/earnings-to-growth rate ratio is incredible, especially when compared to their competitors.
AT&T....................... 1.8
Bell Atlantic.............. 1.7
BellSouth.................. 2.2
GTE.......................... 1.6
Qwest Comm........... 5.6
SBS Comm.............. 1.6
Sprint......................... 2.4
US West.................... 2.9
MCI WorldCom........... 0.8
For those of you who aren't familiar with a PEG ratio, 1.0 equals fair value. The closer to 1 the better, under 1 is outstanding when looking for under-valued stocks.
Low valuation, a high-growth business and selling just above 52 week lows makes this stock an attractive target, in my opinion.
Revenues rose 8.5%, gross margins improved significantly and trading at a significant discount to their peers.
Here is a link that may shed some light on the subject.
streetadvisor.com
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Analyst Kevin Roe of ABN-AMRO stated that WCOM "is the singular most mis-priced company in the industry." Roe reiterated a "BUY" after WCOM released their excellent numbers for the past quarter earlier in the week.
biz.yahoo.com
In fact, 28 of 29 analysts following WCOM give it a moderate or strong buy.
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Technically speaking, WCOM looks like it's breaking out.
siliconinvestor.com
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According to Todd Truitt of Streetadvisor.com, the company represents a solid long-term investment for investors seeking growth at a very good price.
streetadvisor.com
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I must admit that I did place my toe in the water and purchased a small piece of WCOM when it dipped yesterday. It was nice to see it finish up for the day.
Now can someone please tell me if a Yellow Rose of Texas beats a Belle of Tennessee?
dabum |
