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Technology Stocks : WCOM

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To: Anthony Wong who wrote (2970)7/22/1998 6:15:00 PM
From: P.T.Burnem  Read Replies (2) of 11568
 
WorldCom is cheap relative to its brethren. Qwest
Communications is a fascinating example of the great
public- works project that is the Internet: It's laying
hundreds of miles of fiber-optic cable crisscrossing the
country. Qwest is pricier on both an earnings and
sales-multiple basis: about 7.7 times sales on a recent
price of about $33, while the company is expected to
lose 17 cents a share this year on further expansion of its
network. At a recent price of around $47, WorldCom
trades at about 6.1 times sales and 53 times this year's
projected earnings.


WCOM/MCIC ought to be compared to major telecom carriers such as T and FON, not the likes of QWST and LVLT.

Price/sales:

WCOM - ~7.0
T - ~1.9
FON - ~2.1
MCIC - ~2.4 (including a takeover premium)

I'd not be surprised if one day WCOM pulled a cendant on its investors. Let's hope that this will not happen tomorrow 'cause I hold a double position in WCOM.

If WCOM beats the street's estimates tomorrow, consider dumping your entire position at the open before some beancounter puts their numbers under a microscope.

PTB
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