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

To: rampant1 who wrote (2808)	7/7/1998 10:14:00 PM
From: stock_bull69	Respond to of 11568

Kevin, WCOM dropped about $2 last year the day they announced the agreement to purchase MCI. It eventually slid from about $36 down to $28 before recovering. The same thing happened when they announced the acquisition of MFS in 1996. The stock plunged from about $25 to about $18. In summary wall street has already factored the merger into the share price of both WCOM and MCI. Steve

To: rampant1 who wrote (2808)	7/7/1998 11:30:00 PM
From: Bill Cooper	Respond to of 11568

It was obvious that the merger was going to be approved a while back. It did not go off without a hitch. WorldCom did not expect any major divestiture and ended up having to sell off the complete MCI internet business AND agree to a non-compete agreement for the many valuable customers that will go along with it (Of course this is complicated some with the bundled services issue). But don't forget that UUNET is no less than eight times bigger than MCI's internet business and is growing at an incredible rate. But back to my first sentence, the stock has run up on this news already and it is quite frankly anyones guess where is goes from here short term. Yes, usually the company buying the company takes a hit of some kind but if you recall that happened a long time ago when the merger was announced and now the stock is at an all time high and is in a strong uptrend after breaking out of a 45 dollar range over the last few months. Any pullback close to the 45 dollar range is a screaming buy opportunity IMO. Then again 50 looks like a bargain if you are a long term investor. If this were any other company making the kind of promises WorldCom is making there would be a lot more doubt about the synergies promised to analysts being met but Mr Ebbers has proven himself many times in the past so Wall Street listens and believes. It will be an interesting year Kevin, THAT I can tell you for sure.