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Technology Stocks : Frontier - FRO
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To: Paul R who wrote (32)5/14/1997 9:28:00 PM
From: 4-UR-Eyes-Only   of 245
 
IMO, longer term, FRO needs to find either a partner or a suitor in
order for it to survive. The increasing competition in long distance
business will have significant negative impact on FRO's margin. And I
sincerely doubt that it will be able to keep its independence 5 years
from now.

Therefore, the key is the timing for the "DEAL". Management needs to
find a RIGHT time very soon to make a decision to sell before its
valuation comes down more as a result of lower margin. The best timing
for it to solicit an offer will be when the stock price recovers to
around $22 after major "COST CUTTING" exercises. Then the acceptable
price for FRO and the potential suitor to merge will be around $30.

Again, time is running out for FRO. Once GTE gets its own nationwide
network by the end of 1998 and other RBOC's start to offer LD srvice
later this year or early next year, FRO is going to face much more
competition which means lower margin and stock value.

In conclusion, FRO is an excellent long term investment at current
price.
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