Intel (INTC) Should We Buy INTC Now??? Message Board

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Technology Stocks : Intel (INTC) Should We Buy INTC Now???

INTC 41.50

+5.0%

Oct 28 3:59 PM EDT

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To: Brian Malloy who wrote (51)	10/3/1997 3:18:00 AM
From: Sonki	of 84

ORLDCOM INC. (WCOM) 36 13/16 +2 7/16. Wall Street is starting to warm to the idea of WorldCom becoming the Republic Industries (RII) of the telecommunications industry. The comparison is made because there are very few companies out there which can announce three mulit-billion dollar deals in a matter of days, particularly the size of the MCI ($29.4 bln) and Brooks Fiber ($2.4 bln, plus debt) bids, and actually watch their stock price move higher the next day. But as the initial shock to the magnitude of the two deals has dissipated, investors are responding bullishly by bidding WCOM shares higher today, which is in turn increasing the company's ability to outbid British Telecom should BT feel compelled to revise its MCI offer for the second time. One of the parties making positive comments and issuing rosy projections on the pontential combination is DLJ analyst Timothy Weller, who believes cost-savings created by the deal would allow WorldCom to boost its MCI bid to as high as $50 a share. At the current $41.50 bid, the analyst expects the deal to become significantly accretive to WCOM earnings beginning fiscal year 1999. The analyst estimates pro forma earnings of $1.90 for '99 and $2.80 for '00. Also bullish on the deal is Interstate/Johnson analyst Stephen Shook, whose 12-month price target of $45 suggests upside of 22%. Yesterday, Mr. Shook upgraded WCOM to a "long-term buy" from a "neutral," calling WCOM one of the best positioned companies in the industry. Also in the bullish camp is Jefferies & Co analyst Gregory Miller, who forecasts the three companies combined could yield cost savings of $2.5 billion in the first year.

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