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Technology Stocks : Qwest Communications (Q) (formerly QWST)
Q 98.80+6.5%1:30 PM EST

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To: Andrew G. who wrote (308)11/10/1997 8:11:00 PM
From: Tim Bagwell  Read Replies (3) of 6846
 
The comments made earlier by others posting on this thread with respect to earnings and PE are not relevant here.

Earnings and PE are not irrelevant if the stock is perceived to be overvalued. I would submit that the stock is already priced as if it has revenue of a couple billion dollars. That's what a huge PE does to the numbers.

Who wants to own the stock if it will spend a year in a trading range waiting on earnings to show up? I could do just as well to buy it next year at the same price.

Qwest will have more capacity than any other long-distance network

Qwest will have more capacity sooner than others and of a higher quality, technically speaking, but WDM will eventually level the playing field.

Regards,

Tim
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