SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : GTE
GTE 4.315+5.5%3:42 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: David Klein who wrote (446)11/6/1997 12:24:00 AM
From: Uncle Mikey  Read Replies (2) of 671
 
I agree heartily that GTE at the current price is beaten down over uncertainty. Fact is though, that either route it takes out of this uncertainty will lead to a higher stock price. Stock is down due to expectation of high debt. But if the deal with MCI goes through it will bring with it some very strong alliances with BT and Telefonica de Espana. When the market realizes that, the stock will go up. Also IMO , if the deal goes through, it will not be as proposed. I think BT will still play a role, and the deal will be restructured so that GTE offers some stock.

If the deal falls through then GTE quickly goes back to being a takeover target.

There are probably at least 1001 other eventualities but they all seem to me to lead to a higher stock price. And with more than a 4% yield the stock should do well in a market downturn.

I picked up some Jan 2000 $45 LEAPS for about $6 a couple of days ago. Either I am stupid or these are a good deal. By even my most conservative estimates I see GTE hitting $55 in the next two years. If it does that sooner rather than later, or goes higher, the leaps will likely double in value. Under the worst scenario they will hit $10 by contract expiration.

But then again......I thought COMS was a good deal at $51 !

Uncle Mikey
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News