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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: LABMAN who wrote (75339)	11/28/1999 3:51:00 PM
From: Ellen	Respond to of 90042

Another long term look (in addition to Message 12108599 ). SBC New Dow Telecom Stock Rated 'Buy' (SBC) Dividend reinvestment plan (DRIP) guru Chuck Carlson applauds Dow Jones' recent inclusion of telecom leader SBC Communications (SBC) in its time-honored Dow Jones Industrial Average. Dow wants blue-chip industry leaders for its average, and Carlson says SBC fits the bill nicely. "The stock offers an excellent long-term holding for DRIP investors," Carlson says. SBC is the top local phone company and number three wireless provider in the US. The company controls about one-third of all lines in 80% of the top US markets thanks to a spate of acquisitions including Pacific Telesis Group in 1997, Southern New England Telecommunications in 1998, and Ameritech in 1999. Carlson predicts SBC will leverage its size into new revenue streams by entering the long distance market in 2000. But he is most excited about SBC's moves internationally (a 10% stake in Telefonos de Mexico and several ventures in Asia and Europe) and on the Internet (a $6 billion project to provide digital subscriber lines). Though the company is planning for a bright future, SBC is also quite healthy today. The firm just chalked up a robust Q3 with profits rising 22%. Carlson says these earnings gains may slow some but should remain compelling in 2000. Stock in SBC "offers an attractive blend of appreciation potential and above-average yield," he says, as it now sells at 20x estimated 2000 earnings and sports a yield near 2%. He gives it his highest rating of five stars. ----- SBC is a holding company whose subsidiaries and affiliates provide wireline and wireless telecommunications services and equipment, directory advertising, publishing and cable television services. For the nine months ended 9/30/99, total revenues rose 7% to $22.48 billion. Net income before accounting change rose 10% to $3.57 billion. Revenues reflect increased local service, wireless and network access sales. Net income also reflects a decreased interest expense. Number of brokers recommending as: Strong Buy 13 Moderate Buy 9 Hold 4 Moderate Sell 0 Strong Sell 0 ----- yahoo.marketguide.com Broker Research Available From Multex 11/02/1999 SBC: POSITIVE MANAGEMENT MEETINGS HIGHLIGHT DATA STRATEGY, MERGER SYNERGIES, LONG DISTANCE ENTRY EXPECTATIONS; STRONG BUY. Prudential Securities - 4 pages - Free 10/27/1999 SBC: 3Q EPS BEAT EXPECTATIONS; STRONG PERFORMANCE THROUGHOUT; DATA INVESTMENT PAYOFF EXPECTED TO BEGIN IN 2001; STRONG BUY. Prudential Securities - 3 pages - Free 10/23/1999 ACE Consensus Estimates -- SBC Communications Inc. Multex-ACE Consensus Estimates - 2 pages - Free 0/23/1999 Stock Snapshot -- SBC Communications Inc. Multex-Stock Snapshot - 3 pages - Free 10/19/1999 SBC: BECOMING THE FIRST DATA RBOC; AGGRESSIVELY TARGETING THE RIGHT MARKET AT THE RIGHT TIME; $6B INVESTMENT CREATES LONG TERM OPPORTUNITY; STRONG BUY. Prudential Securities-Equity - 4 pages - $10 10/11/1999 SBC: RAISING SHORT TERM RATING TO BUY Brown Brothers Harriman & Co. - 0 pages - $10 10/08/1999 SBC Communications: 3rd Quarter Earnings Preview Jefferies & Company, Inc. - 2 pages - $10 08/31/1999 SBC - Weakness in SBC and AIT Stocks Today Legg Mason Wood Walker, Inc. - 1 pages - $10 08/18/1999 SBC Communications: Fine-Tuning 1999 EPS estimate Legg Mason Wood Walker, Inc. - 1 pages - $10