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

To: halfscot who wrote (3008)	7/23/1998 11:39:00 PM
From: dougjn	Read Replies (1) \| Respond to of 11568

Increase, more likely. Wcom sells bonds at relatively cheap interest rates. It then uses it's highly valued stock to acquire bits and pieces of its telecom expanding empire. Fact is, increasing Wcom cash flow (which is what matters to service debt) and earnings are pretty well locked in for the next couple of years if it doesn't muff its integration of Mcic. Never muffed an itegration before, and this is prime time for Wcom. Expect, before a year is out, that Mci/Wcom is portrayed in the press as overtaking AT&T. How do you think that will effect valuation? Doug

To: halfscot who wrote (3008)	7/23/1998 11:42:00 PM
From: dougjn	Read Replies (2) \| Respond to of 11568

As an addendum. You have to understand that this is an industry in which high debt levels make perfect sense. It's stupid not to. Why? Cause it ain't cyclical. Wcom builds it and they will come. If its costs/prices are right relative to the competition. What happens in a recession is that growth slows a bit. That's it. Very recession resistant business. Wcom has by far the best strategic position. I am major bullish on this one. Check my profile to see how often I tout. Doug