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

To: halfscot who wrote (2726)	6/24/1998 3:18:00 PM
From: dougjn	Read Replies (2) \| Respond to of 11568

halfscot, you should be aware that this low beta price action of Wcom is very new behavior for the stock. I think its basically an Mcic effect. As well as a merger news effect. Post closing I think Jack Grubman of Solomon is right, its gonna be seen as a leading, solid, mega cap high grower. Instead of the speculative high flyer of its past. This perception change will not happen overnight, however. In any event, I would think it will become quite a bit more volatile, up and down, post merger than it has been in the last few months. It should be a fairly recession resistant stock, however. Whether Asian or otherwise. Its merger cost reduction, and more importantly, market share grabbing, story is not terribly economically sensitive. (Its expected to grab share mostly from the RBOC's business customer base, as well as the base of European former state monopoly business customers.) AT&T's Teleport acquisition addresses this same market (a little). It's TCOMA buy announced today, while interesting for other reasons, does not. Doug