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Technology Stocks : WCOM -- Ignore unavailable to you. Want to Upgrade?

To: George Burke who wrote (4803)	7/28/1999 11:47:00 AM
From: Joe Veres	Read Replies (1) \| Respond to of 11568

I agree that in most cases, a stock sell off just prior to earnings is generally a tip off of less than spectacular results. However, I think in WCOM's case, a fair amount of the possible bad news and nervousness stemming from the analyst warning of a couple of weeks ago has already been priced into the stock. Perhaps just meeting expectations with no sign of any slowdown in revenues will alleviate investor fears and will allow the stock to trade back to it's former loftier levels. Tomorrow will definitely settle the issue, one way or another. Luck to all!! J.V.

To: George Burke who wrote (4803)	7/28/1999 12:40:00 PM
From: Anthony Wong	Read Replies (2) \| Respond to of 11568

George, if earnings disappoints and future guidance is towards slower growth, then the stock would likely sell off. However, MCI WorldCom has a reputation of managing their earnings and the Street's expectations quite well and I don't expect a major sell-off after earnings release. We'll see.

To: George Burke who wrote (4803)	7/28/1999 6:16:00 PM
From: jmac	Respond to of 11568

I am very long WCOM. I, too, am disheartened. But given this earning's season reaction to earnings, this stock has trended down prior to earnings so a good report should move the stock up. Had we been moving up and got a great number, the stock would probably tank. Regardless of the particulars, the real number to watch is the ECI number as it will dictate whether the market goes up or runs into a 200 pt decline.

To: George Burke who wrote (4803)	7/28/1999 6:33:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 11568

MCI WorldCom Second-Quarter Profit to Rise on Internet Sales Bloomberg News July 28, 1999, 5:58 p.m. ET MCI WorldCom Second-Quarter Profit to Rise on Internet Sales Clinton, Mississippi, July 28 (Bloomberg) -- MCI WorldCom Inc., the No. 2 U.S. long-distance phone company, is expected to boost second-quarter earnings on surging sales of Internet and international services, analysts said. MCI WorldCom is expected to earn 44 cents a share, the average estimate of analysts surveyed by First Call Corp. Estimates range from 42 cents to 46 cents. MCI WorldCom is benefiting from early investments in the Internet, as well as local and international markets, helping it outpace sales gains at rivals AT&T Corp. and Sprint Corp. In the first quarter, Internet, international and data services accounted for 70 percent of the company's revenue growth, and the company last month said it would spend about $1.4 billion in proceeds from other asset sale to beef up its systems in those markets. ''It'll be a solid quarter,'' said Michael Funsch, an analyst at Independence Investment Associates in Boston, which owns about 6.85 million MCI WorldCom shares. ''They have the lead, and they're extending it.'' MCI WorldCom is expected to release its second-quarter results tomorrow before the start of trading on U.S. exchanges. The Clinton, Mississippi-based company's shares, which have climbed about 21 percent so far this year, fell 1 to 86 11/16. Falling Prices? To be sure, some analysts and investors questioned whether the company will suffer from falling prices for wholesale voice services to other phone companies. Last month, No. 5 long- distance provider Frontier Corp. warned it won't meet expectations for second-quarter and 1999 earnings because of lower prices for long-distance services. Others weren't so concerned. ''MCI WorldCom will hold its own,'' said Tod Jacobs, an analyst at Sanford C. Bernstein & Co., who has an ''outperform'' rating on the company. ''The wholesale business has become a small enough piece of the overall pie that it's not in a position to derail the company.'' MCI WorldCom is benefiting from surging demand worldwide from multinational customers that want a single provider to connect offices around the globe. In addition to an update on international, Internet and local phone investments, analysts are expecting more information on MCI WorldCom's progress in the wireless market. The company in May backed out of talks to buy nationwide cellular provider Nextel Communications Inc. for about $17 billion and a few weeks later said it would buy No. 2 U.S. paging company SkyTel Communications Inc. for about $1.8 billion. MCI WorldCom is also buying several wireless cable- television providers, including CAI Wireless Inc., to deliver high-speed data services. The company's year-earlier results will be stated as if its $47 billion purchase of MCI Communications Inc. and other acquisitions were completed.