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

To: Andrew G. who wrote (470)	12/15/1997 8:01:00 PM
From: Tim Bagwell	Read Replies (1) \| Respond to of 6846

Diana, CIEN went through a similar lock-up experience earlier this year. With CIEN the price was observed to drop only for a brief time when the lock-up period ended. The dip was of a short term nature and was easily corrected by a market that was hungry for high tech stocks back then. But it did make a good buying and shorting opportunity for those who called it right. The other long distance carriers will be playing catch-up now. That's exactly where QWST wants to be, out in front setting the price points that everyone else has to reach. Of course, it will cut into the profits of the competition and they will be forced to find ways to deal with it losing market share in the process. Don't just think of QWST as a high p/e stock, think of it as owning part of an extremely valuable resource, the worlds best fiber communications system built to date. How much is that worth to you? The p/e is high only because the revenue is just starting to grow. I bet that by this time next year we will have seen a couple of huge earnings upgrades or surprises. The management has done a great job of keeping expectations low, just where I want them to be for now. P/E means nothing on this stock for now. I don't even care what the number is.