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Technology Stocks : PCW - Pacific Century CyberWorks Limited -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (169)	1/28/2001 11:08:18 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 2248

City views: Cable & Wireless - Telecommunications; 924p Investors Chronicle - United Kingdom; Jan 26, 2001 Cable & Wireless is completing its transformation from telecoms conglomerate to specialist provider of voice, data and internet services to businesses. The City seems to like the new look. The shares haven't had a great year, but they've outperformed the FTSE telecoms index by 34 per cent. What's more, the company has GBP4.2bn cash to spend on the next stage of its expansion, and the transformation to IP-based services. Unfortunately, the rump of the old-style Cable & Wireless is still hanging over the company. Hong Kong Telecom was sold last year, but the deal has left Cable & Wireless with a large holding in Pacific Century Cyber Works (PCCW) whose shares have been in freefall. The stake in Australia's Optus is also up for sale with Singapore Telecom rumoured to be interested. The Caribbean assets will also go once regulatory hurdles have been cleared. SG SECURITIES' VIEW Buy. The business data market is one of the fastest-growing areas of the telecoms sector, with growth forecast at 30 per cent per year for the next three years. As one of the top-five globally in terms of revenues, Cable & Wireless is well placed to benefit. The target price for the shares is 1,205p. COMMERZBANK'S VIEW Hold. The impressive cash pile is both a blessing, allowing the company to fund an aggressive capex programme, and a curse, making it an attractive merger candidate. The structure and leadership are good, but there are substantial execution risks in successfully integrating all of the businesses. INVESTEC HENDERSON CROSTHWAITE'S VIEW Long-term buy. The future is promising, but the short-term outlook remains mixed. The shares are suffering from an overhang caused by large stakes in PCCW and NTL. Radical restructuring is still affecting the results, and expect pre-tax profits of GBP962m this year compared to GBP1.1bn in 2000. IC VIEW With an impressive collection of global assets focused on a growing market, pre-exceptional earnings should rise steadily. The cash pile marks the company out from its closest competitors who are all tapping the equity and debt markets for further funds. But there are also risks, and the stakes in PCCW, NTL, Optus and the Caribbean interests will hang over the shares until they are successfully sold. Last IC comment: Buy (898p, 24 November 2000). All Material Subject to Copyright globalarchive.ft.com