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Technology Stocks : PSIX up 26.5%, Takeover(?) -- Ignore unavailable to you. Want to Upgrade?

To: wtett who wrote (2028)	2/14/1998 1:15:00 PM
From: bob zagorin	Respond to of 5650

some interesting comments about fiber optics companies qwest and ixc (PSI partner) form Motley Fool. "...Telecom services provider Qwest Communications International (Nasdaq: QWST) fell $5 25/32 to $67 after Joan Lappin of Gramercy Capital Management panned the stock in Business Week's "Inside Wall Street" column. Lappin said Qwest is expensive compared to competitors such as IXC Communications (Nasdaq: IIXC), which was pushed up $3 3/4 to $49 on the comments. Qwest is only starting to offer clients full telecom services, which accounted for a mere 16.5% of its fiscal 1997 revenues, Lappin said. She predicted Qwest's telecom business will account for $350 million in sales in fiscal 1998, leading to net losses of $88 million for the unit. "Qwest has made the year look terrific by reporting 1997 earnings that have little to do with its telecom activities -- which have been losing money," she said. Lappin's comparison is somewhat misguided, though, since Qwest is also a provider of fiberoptic network construction services, which are paying for the construction of its high-capacity network. Qwest is also rolling out 7.5 cents per minute long-distance voice-over-Internet protocol telephony. Based on that price, Qwest should be able to take market share from the big telecom carriers and make more money doing so with its lower-switching costs..."