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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?

To: Scotsman who wrote (2251)	9/29/1998 12:28:00 AM
From: Phil Jacobson	Read Replies (1) \| Respond to of 6846

Bad news for the AM but it's hard to see any real long term effect. Keep in mind the RBOC deal meant more to QWST before they bought LCI. At that time QWST did not have a large communication revenue stream (ie, not much regular monthly cash flow from communication sales), a small sales force, and almost no sales operations infrastructure. Most of these issues were greatly mitigated by the addition of LCI. Note that in terms of the current ongoing revenue streams they get from communications, most of QWST is LCI plus organic growth, and that at the time of the original announcement LCI was livid with QWST for pursuing this deal with the RBOCs (I do admit the results in the US West area were pretty spectacular though). Also, QWST is and will for the foreseeable future be focused mainly on business customers. This was reiterated strongly in the recent conference call by Joe Nacchio about the creation of an IP focused national accounts team and the buyout of ICMT. In this call Nacchio said his efforts toward the mass market would be very limited at this time. So, for the larger investors this should be virtually a non-event. I don't think anyone with a real large stake in QWST was banking on a residential revenue stream of any magnitude. So, 5-10 points? I'll predict $3.50 max within an hour of open, then at least half of it gets recovered. Of course, QWST is at the mid-upper part of its recent trading range so there may be downside there that is outside of the direct effect of this news. Phil