all: intc will be weak due to xeon dealy. LU & AOL great play. lu breaking out and aol is for mo mo players.
more good news for msft..
is T a buy on this dip???
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TELE-COMMUNICATIONS (TCOMA, TCOMB) 38 5/8 and 38 1/8: This is a big one that will have wide implications, although
exactly how that will play out is unclear. AT&T (T) has announced that they will acquire Tele-Communications, Inc. (which we will
call TCI, though that is not the stock symbol) for $48 billion. T will create a new AT&T Consumer Services unit that will combine T's
current long-distance, wireless, and Internet services with TCI's basic cable and high speed Internet services. This is central to the deal. T
says they will upgrade the existing cable infrastructure to provide digital video, data, and phone services. T will be a major player in the
cable industry and its future. T says the new Consumer Services unit will have 1999 revenue of about $33 billion. This deal will probably
be viewed very favorably by the market. It may generate excitement in other cable companies, as well as the Internet in general, as this
creates a major, focussed player on combined services to the consumer over cable. To add to the excitement, T also says that second
quarter earnings will be 8 to 10 cents ahead of current expectations of about $0.78 a share. T may not initially benefit, however, as TCI
carries a lot of debt, and acquiring companies have been taken down after big deal announcements recently. |
