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

To: jjs_ynot who wrote (82)	2/7/1999 1:09:00 PM
From: steve host	Read Replies (2) \| Respond to of 489

Dave - see this: A Cable Giant Backed by a Software Giant Software giant Microsoft recently commited to investing $300 million in our pick of the week, the largest European cable company in more than one country with over 2 million subscribers and 3 million homes passed. Some may question such a pairing, but given the trends in Internet service the deal makes a great deal of sense. To date, the vast majority of the company's revenue have come from standard cable services. But over the last 2 years, the company has been upgrading its network to advanced 2-way hybrid fiber coaxial cable. Over the new network, the company can now offer local telephony and high speed Internet service. With strong cashflow from existing cable operations to fund the network upgrade, a substantial captive audience as prospects and a top new media partner, the growth potential for these new services is enormous FYI: UIHIA is getting 90 million in cash from the IPO. Over 600 million of the debt is rolled into UPC (disappears) and they have valuable other assets which more than make up for the rest of the debt IMHO. As for discount for tax implications - I don't buy it - they will own a majority stake in this attractive monopoly which even MSFT sees the value in. As with any sale of their majority stake (takeover, ala say ATHM takeover of EXCITE) it would demand a preimium not a discount - that premium would more than make up for the tax consequences IMHO - this is a the top growth industry not like steel for example. EPS is too early to determine, cash flow is there big time , which is what counts - this will be judged for the forseeable future like all Internet / Bandwith companies - potential and the monopoly they own.