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

To: Robert Scott who wrote (3637)	12/28/1998 9:01:00 AM
From: Ahmad Sinno	Read Replies (1) \| Respond to of 11568

Robert, >>>They are expected to earn just shy of $2.00 for 1999 and to grow @ 30% a year. Based on this, they are reasonably valued at $70 which is around 35X 1999 estimates. Based on current market conditions 35X '99 estimates is too low since WCOM is a conduit to the internet. I was reading this morning in the journal that CSCO is at over 100X '99 estimates (sorry, can't remember the exact number). The reporter argued that's too high unless you consider CSCO an internet company. I don't know what % of earnings MCI will contribute in '99, but if the old WCOM is valued as an internet company, P/E could easily be twice as high as it is now. I am not saying that internet stocks are fairly valued (they're not!), I am just saying that considering market conditions, WCOM is cheap. just my $.02 worth. Ahmad