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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?

To: JAG2 who wrote (293)	11/7/1997 12:58:00 AM
From: Bill Zeman	Read Replies (1) \| Respond to of 6846

JAG Someone has got to answer you regarding earnings. You don't worry about earnings on a stock like this!!!!! This is like a nextel or a Worldcom, both of which are still loosing tons of money, but look at their charts! QWST is gonna do what these companies did and keep dumping everything they make, beg, borrow or steel right back into more insanely profitable infrastructure. The REAL analysts know this and so do the big money investors and that is why the price levels of companies like this continue to rise. However, I do think this stock is a little over priced and am hoping for a pull back similar to what you are calling for to get into the stock. $19 would be great! When everyone on this thread is mad and singing the blues about how much money they are loosing, then I will be a buyer of this stock. Stocks do go up and down. This one will have some real bleak periods of being down. Again I refer you to the charts of NXTL and WCOM. When this happens, you and I oughta both be big buyers of this stock, because long term it is a huge winner!! Bill Zeman

To: JAG2 who wrote (293)	11/7/1997 5:37:00 PM
From: Tim Bagwell	Read Replies (1) \| Respond to of 6846

I don't think a simple P/E calculation is valid for QWST (plus I just don't like your number). In the absense of substantial earnings in 1998 the price should reflect a market capitalization which is at least equivalent to the undepreciated assets of the company and, in particular, the infrastructure that they are deploying. In addition, the price should reflect the annualized revenue potential of these assets minus any debt. In other words, if QWST were to be purchased by another company what would a fair price be? I don't have an actual figure but at a price of $60 the market cap is about $6 billion which "feels" about right to me. Your number of $19 gives a market cap of only $2 billion which I would estimate as the value of current assets only (which is why the IPO was priced in that range). Even at $60 per share, I have a sneaking hunch that you couldn't touch Qwest for $6 billion in cash.