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

To: stock_bull69 who wrote (3259)	9/2/1998 8:22:00 AM
From: Anthony Wong	Respond to of 11568

Market Growth Will Help Long-Distance Phone Stocks September 01, 1998 1:47 PM ST. LOUIS (Dow Jones)--The stocks of the bigger long-distance telephone companies should do at least as well as the market, if not better, as the industry continues to grow, analysts said. Daniel Zito, an analyst with Legg Mason Wood Walker, said he expects to see increased competition in both the residential and business markets, particularly in small- and medium-sized businesses. Zito said that the sector's large-cap stocks, particularly MCI Communications Corp. (MCIC) and WorldCom Inc. (WCOM) should perform better then the market. A.G. Edwards & Sons Inc. analyst Anthony Ferrugia said that in some cases, long-distance companies should do better then the market because they are less cyclical then the average company. Ferrugia said he likes both IXC Communications Inc. (IIXC) and Sprint Corp. (FON) for several reasons, including their valuations. Ferrugia said there is a lot of growth in the market as people use telephone lines for other reasons than just speaking with another person, such as video conferencing and making purchases on the Internet. "Those applications will bring revenues from outside the telecommunications industry into the industry," he said. Ferrugia said the data market offers the companies a big opportunity, one that is being driven largely by the Internet and corporations setting up internal networks. "Data is going to be the big growth driver in the next three to five years," he said. -Desiree J. Hanford; 314-588-8443; Desiree.Hanford@cor.dowjones.com