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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?

To: Larry Livingston who wrote (4807)	8/4/1999 12:42:00 PM
From: limtex	Read Replies (1) \| Respond to of 6846

LL and thread - Presumably the chief exec has some plan for the company which will increase the value of the stock? I mean it takes something for a stock to crash 50% from its highs when it is apparently doing quite well. QWST isn't an internet stock but it is outdoing them in its price drop. Does anyone have a short version of the plot form here? Regards, L

To: Larry Livingston who wrote (4807)	8/4/1999 4:24:00 PM
From: RTev	Read Replies (1) \| Respond to of 6846

QWST wouldn't move up unless the deal was called off. It's difficult to predict the reaction if the deal were called off. I suspect there would be a spike, but not much. Qwest management has analyzed the company's long-term prospects and decided that it needs last-mile connections to compete effectively. If the deal falls through, then that means the market has decided that the management of this company is incapable of guiding its future. Do you really think there's going to be great upward momentum in such a stock? Do you think those who bailed because of Nacchio's vision for the company are going to jump back in while Nacchio is still running it? If this deal falls through, then we're most likely to see some other big telecom outfit pick up what's left of QWST at a bargain, integrate whatever pieces of the company they need and then sell off the rest to other outfits. As I see it, the only hope for QWST is to complete this deal as quickly as possible (which isn't very quick because of regulatory review) and execute the combination perfectly. I doubt much will happen with the stock price before that happens. Seymour's analysis of the deal posted here recently gives a hopeful spin to this deal. I doubt that such talk can have much effect in the short term, but eventually the stock will churn out those who had some other vision for the company and its stock, and begin to attract those who see a brighter future for Qwest.