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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (455)	7/1/1998 7:54:00 PM
From: porcupine --''''>	Respond to of 1722

Ma Bell going from 'dinosaur to race horse,' analyst says By Jeffry Bartash, CBS MarketWatch Last Update: 04:45 PM July 01, 1998 WASHINGTON (CBS.MW) -- Wall Street can't see past the next quarter and is underestimating AT&T's $48 billion decision to acquire cable company Tele-Communciations Inc., an analyst said Wednesday. "This deal will transform AT&T (T) from a dinosaur into a race horse," said analyst Frederick Moran, who covers telecommunications stocks for Furman Selz. Many analysts, however, say AT&T overpaid for TCI (TCOMA) and doubt the long-distance giant can get its massive network up and running by its target date of 2000 -- at least not without spending billions more than AT&T says it will. That would crimp future earnings. Amid such concerns, AT&T stock has fallen about 13 percent since the deal was announced on June 24. The stock closed down 3/8 at 56 3/4. "Wall Street analysts tend to be short-sighted in their focus," Moran said. "Once the investor community can begin to recognize that AT&T is putting together a network to offer a bundle of telecommunications services, which will put them in the driver's seat against the regional Bells, the stock will come roaring back." Moran says the technology AT&T intends to employ -- two-way cable connections eventually based on the new "Internet-packet" standard -- is "completely proven." "AT&T's ambitions are bold, but clearly grounded in current reality," Moran said. Jeffry Bartash is an online reporter for CBS MarketWatch.