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Technology Stocks : AT&T
T 25.67+0.9%3:22 PM EST

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To: Daniel Fisher who wrote (418)7/4/1997 4:28:00 PM
From: Louis Cristiano   of 4298
 
It amazes me that so many investors have accepted the excuse for AT&T's stock price being depressed as a necessary consequence of its need to invest huge sums of money to compete in today's highly competitive environment, and that as a result of this, near term earnings will be hurt.

Nothing could be further from the truth.

Doesn't MCI and Sprint also have to invest large sums of money to
compete?

Consider the following and ask yourself `why is AT&T the only long
distance carrier whose stock price is suffering so badly'?

1- AT&T's long distance business is greater that MCI and Sprint put
together.
2- AT&T's dividend payout is greater than MCI and Sprint put together.

And yet-

3- AT&T's stock price is near an all-time low.
4- MCI and Sprint's stock prices are at an all-time high.
5- AT&T is selling at a price to earnings (p/e) ratio of less than half
that of MCI and Sprint.

My conclusion is that AT&T lacks leadership with intelligence, vision,
nerve and strategy.

It's time to sweep out the cobwebs.
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