AT&T May Be an Inexpensive Internet Stock Play, N.Y. Times Says
Bloomberg News
May 9, 1999, 1:18 p.m. PT
New York, May 9 (Bloomberg) -- AT&T Corp.'s transformation
to a technologically advanced communications company from a
century-old phone concern could make it a cheap Internet play at
28 times trailing earnings, especially since it has real assets,
a seasoned management team and a healthy balance sheet, the New
York Times reported in its ''Market Watch'' column. Unlike many
technology upstarts, AT&T had $53 billion in revenue last year,
$6.4 billion in earnings and it pays a dividend. After having
spent $124 billion in acquisitions in the past 18 months,
including last week's $58 billion bid for cable television
company MediaOne Group Inc. and its earlier $59.4 billion
purchase of Tele-Communications Inc., AT&T plans to offer voice,
data and Internet services over a broadband cable network -- a
vision that's made AT&T the kind of technology stock day traders
on the Internet favor, the paper said.
While AT&T's stock fell 1 1/2 to 60 7/16 on Friday, it's up
almost 20 percent so far this year.
(NYT 5/9 3-1 www.nytimes.com) |
