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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (38839)	10/26/2000 2:32:54 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 70976

OT re WCOM: I thought WCOM stock was a great deal at 40, and I think the LEAPs are good now. I only consider LEAPs if I think there is a near-certainty of at least a doubling in the stock before the LEAPs become shortterm (within 6M of expiration you lose most of the time premium). I may sell some of my higher-cost stock for the tax loss, wait 31 days, and buy the LEAPs. WCOMs earnings are a study in contrasts. The "old businesses" (LD phone, mainly) are doing better than T (meaning bad instead of really bad). Their "new businesses" are showing slower growth than last year, but still in the range you'd expect from a dominant player in a growth industry (>20%). 3-5 years from now, all their business will be "new business", and I think LT growth rates in EPS for WCOM will be in the 20-25% range (not this year!). The stock is selling at a valuation appropriate for a no-growth industry, a broken company, which is totally wrong. I think all the tracking stocks (past and future) in telecom services are just creative accounting. What do you get when you cut a shrinking pie into pieces? Shrinking pieces. Obviously, the market agrees, because they (telco trackers) have uniformly done poorly.