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

To: JDN who wrote (5994)	3/15/2000 11:26:00 AM
From: jim black	Read Replies (2) \| Respond to of 11568

Not go up from here to prior levels??? I'm curious. Why the pessimism on a company with UUNet, MFS(old), MMDS, overseas in Asia, Europe, projected 2001 earnings of ~$2.45, i.e. pe of!18, with growth rate in data and internet of around ~30%,i.e. PEG ratio of~.65 give or take , not be expected to double or triple in 3-5 years? Just don't get the pessimism. "AH, the madness of crowds"...from a personal perspective, all this BS about the runup in biotechs has me baffled...This is NOT off topic. I'm a retired neurologist, used to prescibe Biogen's drug Avonex for MS, average cost of ~$1000/mo... Now give me a break! Who in God's name is going to pay for these megadrugs in the next decade when the average cost of developing a new drug to market in the US is $450! million?...the third world? the baby-boomers who are making overnight megabucks in stocks like INCY, BGEN, AMGN, and on and on...IMHO the immediate future for us babyboomers is in telecommunications since so much of the world is growing in that direction first..I think this drift of money away from the likes WCOM(with real earnings((nasty word)) into many of the dot.coms and biotechs is crazy at least for my time horizon of 3-5 years. Hope I didn't raise any hackles but that's the way one very tired doc sick of the medical/drug system in this country sees the world...FWIW I also keep about 60% of my portfolio in Fed secured funds...Just think, when you lie down to sleep at night how safe is the money in some of these ridiculous high fliers these days, when on any given day Tokoyo(sp) is hit with a citizen-detectable earthquake every HOUR? Their big one when it happens is going to pull alot of money out our our market. Yeah, I'm paranoid, but I think we should all keep our eye on history that says, regarding the stock market and individual stocks, trees don't grow to the sky and WCOM is one of the safest longterm plays in the market...Please pardon the rant and forgive an old man who has owned this company since the dips in old MFS Communications days....Best to all, Jim Black

To: JDN who wrote (5994)	3/16/2000 10:50:00 PM
From: Dan Hamilton	Read Replies (2) \| Respond to of 11568

Analyst predicts DOJ will block Sprint/MCI WorldCom merger By David Rohde, Network World 03/15/2000 A well-known telecommunication analyst predicts the U.S. Department of Justice will block the proposed merger of MCI WorldCom Inc. and Sprint Corp. Scott Cleland, lead analyst for the Legg Mason Precursor Group, said the Justice Department is preparing to request an injunction against the merger in federal court. MCI WorldCom and Sprint would then have the right to seek a trial, but Cleland noted that few mergers delayed in this manner ever go through. In his report, Cleland repeatedly cited what he called the "failure" of the 1998 spin-off of the former MCI Internet backbone to Cable & Wireless USA ? the key move that sealed government approval of the merger between MCI and WorldCom. The current MCI WorldCom has broadly signaled that it would be willing this time to spin off Sprint's Internet business, but Cleland said the Justice Department doesn't think that's nearly enough. In a harsh assessment, Cleland said the Justice Department is "embarrassed that the MCI divestiture to Cable & Wireless went so badly," and added that the regulators "harbor a 'fool me once, shame on you, fool me twice, shame on me' attitude toward MCI WorldCom." Cable & Wireless last year sued MCI WorldCom, charging, among other things, that the MCI Internet customer records they received were fouled up. Cable & Wireless customers also complained that the transition was rocky. The two companies recently settled the case, with MCI WorldCom agreeing to pay $200 million. MCI WorldCom didn't acknowledge any wrongdoing, but Cleland said the settlement "strongly suggests that that Cable & Wireless' charges of competitive damage from anticompetitive conduct had merit." Among other reasons that the merger is in trouble, according to Cleland: The Justice Department has signed on top litigation attorneys for the case, something it has rarely done in past telecom mergers. The Justice Department doesn't buy into theories that regional Bell operating companies will soon be entering the long-distance market in many states. The next-biggest competitor, Qwest Communications International Inc., will soon be shut out of long-distance service in 14 states because of its pending merger with US West Inc., which is barred from long-distance carriage in its own territory. The combination of MCI WorldCom and Sprint increases concentration not only in the long-distance voice market, but also in frame relay and ATM. Cleland cautioned that the Justice Department's action may not come immediately and may even take several months. He said that if MCI WorldCom can't buy Sprint, someone else probably will. Likely prospects include BellSouth Corp. and Deutsche Telekom AG. Other analysts were rushing this morning to put their own spin on the report, in what appeared to be a largely successful effort to avoid damage to Sprint's stock. A. G. Edwards & Sons Inc. sent out a note disagreeing with Cleland's analysis, but adding that even if the merger is blocked, Sprint's value should hold up as an acquisition target for someone else. MCI WorldCom and Sprint representatives were not immediately available for comment. Sprint's stock was at $58.125 in mid-afternoon trading, up 44 cents, while MCI WorldCom was also up 44 cents, to $43.50. For more information about enterprise networking, go to Network World Fusion. Story copyright 2000 Network World Inc. All rights reserved.