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Technology Stocks : Liberty Livewire - LWIRA -- Ignore unavailable to you. Want to Upgrade?

To: scott who wrote (20)	6/20/2000 2:36:00 AM
From: Xenogenetic	Respond to of 50

That's a tough call. On the one hand you have an LDIG, being an investment/tv portal play, by it's "investment nature", can appreciate in $ quicker (less overhead/less moving parts). But, the little known LDIG already has a market cap of almost 8 billion...an investor has to ask how much more, relative to other stocks, a company at that cap can rise. On the other hand you have a LWIRA, a service company with already somewhere between 2000-3000 employees, that in line if sharing characteristics with other service companies (lots of overhead/more moving parts), will tend to appreciate in $ slower. But, LWIRA has a much smaller market cap of around 300-400 million, thus giving it much more room to run (hence, greater opportunity for an investor to make money off of). Add yet another confounding variable into this mix with LMGA's statement that LDIG and LWIRA will share incredible synergies...an you really have yourself a tough decision to make. One thing that is for sure, although, is that Malone would not create a separate entity solely dedicated to LWIRA's line of business if he did not think that the potential to make huge profits were not there. To quote exact words: "Astronomical long term gains are going to be the end result". Those are pretty strong words from a normally very coy and conservative Liberty Media. LMGA would be a good way to play the growth of both LDIG and LWIRA, but you are less likely to hit the ball out of the park (i.e. +1000% or more) with it due to it's sheer size (a company with a 60 billion dollar mkt cap can only appreciate so much before the law of financial physics bring it back down to earth). This reminds me of the chuckle that I always get when I hear misled people preaching that putting a few dollars into a CSCO, MSFT, or INTC, today will make them into millionaires in a few years. Trick is to catch these companies when they are at very low market caps, and not when they are already 100 billion dollar companies. Anyhow, hope I gave you some angles to ponder before your decision. Take care. -Xeno