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Technology Stocks : WCOM -- Ignore unavailable to you. Want to Upgrade?

To: William Cooper who wrote (2270)	3/17/1998 8:24:00 AM
From: Mazman	Read Replies (1) \| Respond to of 11568

Some interesting comments on Worldcom from the CANSLIM newsgroup (the folks who follow the investing strategy of IBD editor William O'Neill). All posts from last 24 hours. mazman ---------------------------- ... EPS Rank is only 6 (WCOM took a beating earnings wise last year, nevertheles stock price appreciated substantially), RS is a fairly healthy 78. GRS is 99, however. U/D ratio is 2.3, funds only own 19% of shares. Looking at earnings estimates for the next two years, earnings are expected to grow over 100% annually. Debt is zero. But what I like most about the stock is it's chart pattern. I see a cup from October to February, with a nice handle for the last 5-6 weeks. Also, this company has been an outstanding performer for the past several years. Basically, my read is that this is an excellent large cap growth stock in an outstanding industry, whose earnings are about to turn around, and which has just come out of what loks like a cup and handle pattern on tremendous volume. That's why I bought some this morning. We'll see what happens. ...WCOM clearly does not qualify as a CANSLIM stock even under a liberal interpretation of HTMMIS ("How to Make Money in Stocks", book by William O'Neill) because 1) the long term and last 2 quarters EPS are not anywhere near 18%+ growth (lost over a billion last year!) and 2) the 900M shares out and 34B market cap clearly put it out of the range of any stocks discussed in HTMMIS. ... WCOM won't have earnings for some time. Currently they are spending all their money in aquisitions, buildout of the network infrastructure. By the time they actually start showing earnings it might be too late to get into the stock. Look at stocks like YHOO, AMZN and the valuations they are trading now , all on the premise of future earnings growth. If you wait around for these companies to display earnings you are missing the major part of the runup.