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Technology Stocks : Verizon Communications (VZ) -- Ignore unavailable to you. Want to Upgrade?

To: Alfredo Nova who wrote (34)	8/14/2000 10:12:54 AM
From: Rob Preuss	Read Replies (3) \| Respond to of 2198

Hi Alfredo! The strongest criticism I have of your analysis is that I agree with it 100%. <smile> The market was correct to downgrade VZ recently since they pushed out their growth targets for at least a year from where they had been. So, for the shorter term, things don't look so good for VZ. But this is a big strong company whose long term prospects are phenomenal. Right now they're entering a period of digestion as they work to get their act together operationally and in terms of long-distance approvals through the old BEL territories. Along the way we may see some smaller acquisitions but I think the focus for now will be on organic growth and post-merger consolidation. The stock should see some boost if/when they get long-distance approval in a few more states - I understand that Massachusetts is next on the list. The strike is no big deal. The only place I see them doing anything big on the M&A front is with regard to global expansion; I don't think that organic growth will be enough in Europe and, with NTT DoCoMo approaching the US shores, I don't think VZ can afford to ignore Japan and SE Asia for very long. VZ seems like a good investment if you have a long term time horizon (3-5 years) but I don't see it as very exciting in the short term (under 12 months). The silver lining is that it doesn't have much downside potential from here. Rob