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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Wallace Rivers who wrote (11229)	10/6/2000 12:55:18 PM
From: Madharry	Respond to of 78659

T has some big problems- I am not saying its not a good value i do not know but- the long distance telephone business is a commodity business where the revenues are just steadily declining, the wireless business is getting more competitive and the cable upgrades are very time and capital consuming activities. so the key question becomes how successful is att with local business and integrating and bundling all of its stuff. This is a far cry from a branded monopolistic business. there are management issues now and there may be management issues in the future. I think that att overpaid for many of its recent purchases because it had no choice. As far as intel- it has to transform itself just like microsoft. is a 40-60 multiple justified under those circumstances? I don't know. i would much rather own ALSC which has a big stake in a major foundry. Right now there not enough foundries to produce all the chips required. you still get alsc core business for free. I know the stock and most chip makers continue to be in the doldrums but it doesnt alter the fact that the value and earnings power are there.