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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: besttrader who wrote (20927)	5/7/2001 2:40:25 PM
From: American Spirit	Respond to of 37746

WorldCom, based in Clinton, Miss., is in the process of breaking itself into two pieces and separating its slower-growth businesses -- including wholesale and voice long distance -- into a tracking stock. The businesses being placed in the tracking stock are suffering from falling prices and aggressive competitors, as well as customers shifting calls to wireless phones and e-mail. WorldCom declined to give a revenue growth target for the combined company, saying that it plans to use the consumer unit to generate cash, not for revenue growth. After slashing its 2001 revenue targets late last year, the company still expects 12% to 15% revenue growth for its high-growth business. For the latest quarter, WorldCom's revenue inched up to $9.72 billion from $9.61 billion a year earlier. The company's biggest gain came in sales of Internet services, such as high-speed lines, which increased 35%, and sales of data services, which grew almost 19% from a year earlier. Sales of voice long distance, however, fell 5.4%. After several quarters of disappointing results, industry watchers said they were encouraged that WorldCom is starting to see some easing of the severe pricing pressures that have hurt the entire long-distance industry. While revenue from voice long distance was down from last year, Mr. Ebbers said long-distance prices are beginning to stabilize, and the company isn't seeing the intense price wars that once gripped the industry. WorldCom, which has been trying to recast itself as a data company, said its plans to break into two companies are proceeding. The company plans to hold a special shareholder meeting on June 7, when investors will be asked to vote on the restructuring. If the company gets approval, Mr. Ebbers said, WorldCom "will distribute tracking shares very soon thereafter." * All in all not bad-looking. WCOM has been acting like a dog but as we have seen, all good dogs have their days. Can't see it staying in the teens for long. But if it doesn't move soon I may give up on it when I go to Europe. No worries. Average $17 a share cost.