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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: cfoe who wrote (440)	8/2/1999 8:53:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 13582

That's an accurate description of what AT&T is doing. Unfortunately, they can keep pushing a technically outmoded investment because of their market share, and even more important, because they can borrow large amounts of capital at interest rates well below what some younger, smaller company would be able to get. Just compare the credit rating of AT&T with QUALCOMM, which is no small company, and which generates a good deal of free cash flow, and you'll see how much better off AT&T is treated when it goes to the bank.

To: cfoe who wrote (440)	8/2/1999 11:07:00 PM
From: engineer	Read Replies (1) \| Respond to of 13582

What will happen in the end is the same old change and loss strategy that they always do. This is where they buy another company which already does CDMA as it's wireless division and get rid of the TDMA division by selling it off at a loss, thus keeping the business alive, but allowing the management to bundle all the other losses from all over the corporation into this transaction, thus making the "one time charge" enormous, but understable to the old world investors they keep year after year. They did this with NCR and a host of other business in which they spent Billions acquiring, screwing up, and then spitting out. I predict that they need to buy something within a year or the plan goes to hell.