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Technology Stocks : WCOM

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To: halfscot who wrote (3008)7/23/1998 11:39:00 PM
From: dougjn  Read Replies (1) of 11568
 
Increase, more likely.

Wcom sells bonds at relatively cheap interest rates. It then uses it's highly valued stock to acquire bits and pieces of its telecom expanding empire.

Fact is, increasing Wcom cash flow (which is what matters to service debt) and earnings are pretty well locked in for the next couple of years if it doesn't muff its integration of Mcic. Never muffed an itegration before, and this is prime time for Wcom.

Expect, before a year is out, that Mci/Wcom is portrayed in the press as overtaking AT&T.

How do you think that will effect valuation?

Doug
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