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

To: Road Walker who wrote (6839)	6/22/2000 1:35:00 PM
From: MGV	Respond to of 11568

11:02am EDT 22-Jun-00 CIBC World Markets Corp WCOM/FON - LD Operations Sale Reported CIBC World Markets June 22, 2000 Investment Conclusion According to the Financial Times, WorldCom Rating: STRONG BUY (WCOM - SBuy) is planning to sell of WCOM-OTC(6/21/2000) $40 1/4 substantially all of Sprint's (FON - SBuy) 52-week $63-35 7/8 long distance network assets and operations, Shares Out 2.9 Billion including its Internet backbone, in order to Float 2.9 Billion Shares mollify European regulators concerns over Market Cap $117 Billion the deal. The asset sale is reported be for Div/Yield Nil/Nil some $40-$45 billion - about 80-85% of FON's Fiscal Year December firm value. The details are reportedly Book Value $17.19 per Share still in flux, but apparently the outlines 1999E ROE 2.7% of a deal have been agreed. We would LT Debt $19 Billion emphasize that we are still in the middle of Preferred Nil a negotiating process here and that we would Com Equity $53 Billion expect further developments. Such a sell-off would still leave WorldCom in a very solid position. In fact, it would allow WorldCom to focus on the assets it is Earnings per Share most interested in (wireless) and disposes 1998 $0.56 of long-haul assets that are of uncertain 1999E $1.32 value as companies such as Level 3 and 2000E $1.90 Williams drive the market towards horizontal segmentation. We would expect FON to trade P/E Ratio up on the news and believe WCOM should also 1998 71.9X move up from its current low levels to the 1999E 30.5X $50-$55 range if only due to reduced 2000E 21.2X uncertainty. The major concerns are 1). Whether such a sale would yield an * Estimate for 2001 includes adequate premium to offset the price WCOM is Sprint and exclude paying for those assets (much of the $3 Bn. expected synergies from the deal came from combining the FON/WCOM LD operations). Company Description: 2). Whether this opens up the possibility MCI WorldCom, headquartered in of another company bidding for Sprint in its Jackson, MS, is the largest CLEC entirety. operator and Internet company 3). Whether the sale can be done without and the second largest incurring tax losses. long-distance company and We note that there are likely to be several carrier of international bidders for Sprint's long distance network - traffic. most notably Deutsche Telekom, France Telekom, and, less likely, Bell South. We also note that these buyers were already priced out of the bidding for FON overall in the fall. The EC is still scheduled to vote on the merger at a meeting on July 5. Our quarterly EPS estimates are shown below. 1 Qtr. 2 Qtr. 3 Qtr. 4 Qtr. Year 1998 Actual $0.12 $0.15 $0.14 $0.15 $0.56 1999E Current $0.24A $0.29A $0.37A $0.42E $1.32E 2000E Current $0.44A $0.46E $0.49E $0.53E $1.90E ============================================================================== This report is issued by (i) in the US, CIBC World Markets Corp., a member of the NYSE and SIPC, (ii) in Canada, CIBC World Markets Inc., a member of the IDA and CIPF, and (iii) in the UK, CIBC World Markets International Ltd. or CIBC World Markets plc, each of which is regulated by the SFA. Any questions should be directed to your sales representative. Every state in the United States, province in Canada and most countries throughout the world have their own laws regulating the types of securities and other investment products which may be offered to their residents, as well as the process for doing so. As a result, some of the securities discussed in this report may not be available to every interested investor. Accordingly, this report is provided for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. No part of any report may be reproduced in any manner without the prior written permission of CIBC World Markets. The information and any statistical data contained herein have been obtained from sources which we believe to be reliable, but we do not represent that they are accurate or complete, and they should not be relied upon as such. All opinions expressed and data provided herein are subject to change without notice. A CIBC World Markets company or its shareholders, directors, officers and/or employees, may have a long or short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon. A CIBC World Markets company may have acted as initial purchaser or placement agent for a private placement of any of the securities of any company mentioned in this report, may from time to time solicit from or perform financial advisory, investment banking or other services for such company, or have lending or other credit relationships with the same. The securities mentioned in this report may not be suitable for all types of investors; their prices, value and/or income they produce may fluctuate and/or be adversely affected by exchange rates. 1999 CIBC World Markets Corp. and CIBC World Markets Inc. All rights reserved.

To: Road Walker who wrote (6839)	6/22/2000 2:18:00 PM
From: JDN	Respond to of 11568

Dear John: CNBC calling anyone ELSE weird? Thats a good one. JDN

To: Road Walker who wrote (6839)	6/22/2000 3:18:00 PM
From: SecularBull	Respond to of 11568

Faber... The voice of Wall Street... HA! HA! HA! HA! HA! HA! HA! HA! HA! HA! HA! HA!