AT&T Message Board - Msg: 14886990

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Technology Stocks : AT&T

T 23.59

0.0%

Jan 23 9:30 AM EST

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To: Jody Ritchie who wrote (3932)	11/27/2000 12:10:56 PM
From: Mark S.	Read Replies (1) of 4298

Jody, I might make an attempt at this, maybe would create some dialog. T basically has 4 divisions, Long Distance, Wireless, Business networking and cable. If the long distance has a 0(zero) value then the intrinsic value is still around $30. However I believe that T needs some time to absorb there endeavors (merger, breakup and IPO fees). Regardless of what the pros say the LD revs allows T to build on the other three opportunities. Last years synergies enticed the board to get into cable thinking they could compete with local service and Broadband. Giving their customers a combined/bundled bill. Many things have happened though. Investor’s greed (shame on the board for buying into it) The IPO for AWE went much better than anyone had hoped and that in it will need time to get back to a reasonable value. If you pay over market price for a house because that is the house you want you'll need time to allow inflation/value to catch up. Some have argued that CMA overpaid for cable. I disagree, the market overvalued cable (comparable to other entities) because of the possibilities. I think the cash flow from the cable will eventually carry its own weight. Business Services still remains to be a positive. However not enough to take the place of LD. Finally AWE is very much undervalued, however the suggesting here is even though AWE is a tracking stock and stands on its own. It doesn't. AWE needs capital (some may be in the pipes as we speak), and the big T can provide. However the bond ratings are under attack right now. Why T is splitting off still baffles me. But people allot smarter than me is working on this. T should be a buy at these levels. But the market sure isn't agreeing with me. But the old economy stocks (I think T is an old economy stock) are making headway, as the Internet isn't providing the explosion of opportunities they had once promised.

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