Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: JDN who wrote (4921)	8/20/1999 3:36:00 PM
From: PDL	Read Replies (1) \| Respond to of 11568

I'm no chartist, JDN, but WCOM has (with today's decline) retraced to it's late December 98 level. Today's drop (I assume) is sympathy for FON's 11%+ drop and the accompanying concerns of pricing/margin pressures. If the many analysts who are predicting $2.95 EPS in FY 2000 are on or close to correct, you can buy WCOM today at P/E of 25X that number. With its current and projected growth rate, most of these same analysts view a 35-40 multiple appropriate (which would bring WCOM into the $110-120 range by the end of this year when investors will start valuing on the projected EPS figure). I think it's dirt cheap here... but then I'm super long. For anyone with a reasonable time horizon, this has to be a good entry point... Doesn't mean it won't go lower (Fed announcement next week and who knows what will happen if/when China initiates a war with Taiwan) but barring a calamity, this will look like a super entry point a few years from now (maybe even 3-4 months from now). JMHO.

To: JDN who wrote (4921)	8/20/1999 5:50:00 PM
From: Mike Gordon	Read Replies (2) \| Respond to of 11568

Like you, I'm still licking my wounds from catching this knife at 76 3/16. Fundamentals look good, however we are faced with the following: Bad PR due to last week's outage. Perception of this error is a management problem which needs to be quickly rectified. Specifically, regardless of which vendor is at fault, WCOM needs to claim total responsibility combined with a game plan which explains why this won't happen again. For those who own and dont want to wait for a recovery, sell the Sep 80 or 75 calls to reduce your basis. Lower rates by FON 5 cents per minute. Management needs to explain to shareholders what the net effect is on residential earnings and what the overall impact will be on EPS. Isn't WCOM a data intensive company? Have access charges paid to the BOC enjoyed a corresponding decrease? The disposition of mergers. When do they become profitable? And maybe just a few friendly words from top management.