Absolutely right. Now imagine the merger has closed. Mci-Wcom is then one of the biggest cap Nasdaq stocks.
Now lets say you've seen that its the big caps that are where all the money has been made in this market. And its the midcaps which explode (despite the rare CD's which do as well.)
But you're looking at slowing growth in the second half, and increasingly its looking like it'll be slow in the first half of 99 as well. Due mostly to Asian exposure.
And you figure that the big money still to be made may well be made in big caps that are still gonna have big double digit growth rates in that envirnonment. So you look around for them.
Msft. Some Asian exposure, somewhat slowing growth, but still very solidly in the mid 20s, at least. So buy or hold that, even though its awfully expensive. Intel-- but its not growing at all these days, and maybe will resume later than thought due to Asia, cheaper PC's etc. Hmmm.
What about this newly huge Wcom? Now that its got Mci its gotta be taken seriously. Its the hardware side king of the internet. Gets almost no revs from Asia. Earnings growth in the mid 20s. Selling at less than 30 times 99 earnings. That's cheap for a mega grower mega cap!!!! Buy, buy, buy.
That's how I see it. With some help from Jack Grubman.
Doug |
