<A> IXC Hits 2nd-Consecutive 52-Wk High; Qwest Also Rises
By Shawn Young
NEW YORK (Dow Jones)--Shares of IXC Communications Inc. (IIXC) and Qwest Communications International Inc. (QWST) stampeded upward Tuesday, with IXC hitting a second-consecutive 52-week high as more than six times the usual number of shares changed hands.
Qwest, based in Denver, and IXC of Austin, Texas, both are building long-distance communications networks based on Internet technology. Analysts say they could revolutionize the telecommunications industry with their low costs and high capacities for both voice and data traffic.
Qwest announced $12 million in contracts Tuesday, but IXC didn't release any news that would account for the onslaught of trading. Company officials weren't immediately available for comment.
Qwest has been a high-profile hit with investors. IXC is benefiting from the spotlight Qwest has cast on the need for high-bandwidth phone networks, said Robinson-Humphrey Co. analyst Jeff Sadler.
"People are looking at Qwest and saying, 'OK, who else?"' Sadler said.
Qwest and IXC are the two pure-plays in the business. Williams Cos. (WMB), a Tulsa, Okla., energy and communications company, is also building a high-tech long-distance network. Its NYSE-listed shares ended the day down 5/16, or 0.9%, at 33 1/8 in moderate trading.
Sadler said the networks the companies are building are "the answer to the industry's ills."
"People are beginning to take IXC very seriously," Sadler added. "It's nothing more than recognition and momentum."
IXC shares hit a 52-week high Monday of 53 3/4, then cooled off a little to close at 53 1/2, up 3 1/8, or 6.2%. Tuesday the stock hit a 52-week high of 58 3/8 before closing at 57 13/16, up 4 5/16, or 8.1%. Volume Tuesday was 1.2 million, which dwarfed the daily average of 175,500.
Qwest, which went public June 30, has seen its stock rise from 26 3/8 on that day to a high of 74 on Feb. 2. Shares gained 2.2% Monday and rose 3 7/8, or 5.7%, Tuesday to 71 1/2 on Nasdaq volume of 799,700. Average daily volume is 260,400. |
