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

To: Joe Veres who wrote (4804)	7/28/1999 12:30:00 PM
From: Anthony Wong	Respond to of 11568

10 Stocks To Grow With Fortune Magazine, August 16, 1999 cgi.pathfinder.com Excerpts: When it comes to the fast-growing telecom sector of the technology revolution, it's hard to find a better bet than MCI WorldCom. As Deutsche Banc Alex. Brown analyst Kevin Moore puts it, "This company has the best long-term position in the industry." For starters, there's its thriving data business. MCI WorldCom is already the world's largest Internet service provider, and revenues from its Internet unit jumped by an impressive 60% in the latest quarter. In addition, having made substantial investments in overseas markets, the company now stands to benefit from telecom deregulation in Europe and elsewhere. Thus, between this year and 2000, profits should increase by more than 40%, making MCI WorldCom one of the fastest-growing large-cap companies around. Even when you look out over a few years, the profit growth should remain very strong; Moore expects earnings to rise by 30% annually over the next three to five years. Despite that kind of long-term performance, MCI WorldCom still trades at only 32 times next year's earnings, well below the valuation of other fast-growing companies. One reason for the relative pessimism is that Wall Street is worried that CEO Bernie Ebbers is about to make a costly acquisition of a big wireless company such as Nextel or Sprint. Wireless is the one area of telecom in which MCI WorldCom isn't a player, so a deal would make sense. However, it might cause a brief dip in the stock. If that happens, says Moore, back up the truck and buy as many shares as you can. If you think the stock's a good value now, it'll be an even better deal then. "It'll be the last chance you ever have to buy this company at a discount," Moore predicts.