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Technology Stocks : PCW - Pacific Century CyberWorks Limited

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To: ms.smartest.person who wrote (1241)	5/19/2001 8:30:03 PM
From: ms.smartest.person	Read Replies (1) of 2248

WHAT'S BIG ON THE BOARDS C&W and Baltimore May 16, 2001 By Andrew Yates, DigitalLook.com This week we look at investor reaction to a big deal from Cable & Wireless and results from Baltimore Technologies. This exclusive column on the hot topics of the boards is compiled by investment website DigitalLook.com. Post all your investment thoughts and ideas on the UK-iNvest bulletin board. Cable & Wireless (CW. - news) has finally started to spend its huge cash pile, buying Digital Island for $340m (£240m). The group also plans to pump hundreds of millions of dollars into the bombed-out US internet company to make it a success. But the group still has £6bn in the bank following the sale of stakes in Hong Kong Telecom, Optus and PCCW. Now it has emerged that a share buy-back may be on the cards. But the excitement over the cash pile has obscured the fact that C&W has just announced a 16% fall in profit because of difficult market conditions, particularly in the US. So do the punters on the bulletin boards believe C&W should splash the cash on acquisitions or give it all back to shareholders? "zinwsh" on Interactive Investor said: "C&W is a world-class company with excellent management. It made Mercury and sold in good time. It made One2One and sold in good time. It now has cash at the right time for good cheap buy-outs." "404 not found" added: "C&W would be daft to return cash to shareholders. They should use it to build more infrastructure to enable them to deliver their services at the lowest possible cost." "Papaduke" on Interactive Investor said: "CW is a massive company and I would estimate they are in one of the strongest positions in corporate history, with a chance to buy the cream of telecoms at massive discount prices and still retain a huge cash pile." "The Northerner" added: "I think the results and statement are about as good as we could have expected. Profit figures were at the high end of estimates and overall for the rest of the year they seem reasonably bullish considering the market conditions. Why should C&W spend their cash frivolously or make a special payout/dividend payment just to keep the short termers happy(including those wanting to pay for their new BT rights shares). If they keep the deals coming in like the one earlier this week I will be more than happy and am confident we will see a resurgence in the share price." But "barling6" on Motley Fool said: "C&W has found itself in a new ball-game trying to become No. 1 in the world where its main market in Japan is facing intense price competition and recession. The same can be said for America. With a strategy that will one day reap huge rewards it is left with slowing growth and a bombed-out share price with lots of cash!" And "Wshak" added: "The unpalatable truth is that over the last eight years, C&W has been a terrible investment for a supposed blue-chip company." "NetNavvy" on Motley Fool summed up : "So who are the real big gamblers here? It is not (CEO Graham) Wallace, believe me. It is anyone with a share in this company. If the plan works then everyone will be happy and Wallace will be hailed a genius. If it doesn't, he'll leave with a wad of notes, a wad which the shareholders will have lost." uk-invest.com

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