Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: PDL who wrote (4314)	4/29/1999 11:50:00 PM
From: limtex	Respond to of 11568

PDL - , I think you are going overboard to suggest that this deal could drive WCOM into the 50's Well maybe but think of it this way.. with the brilliant announcement of todays stunning earnings and revenue growth WCOM should have gone through $100. It was $94 only a few days ago ( happy memories!!) instrad even before any trouble with an acquisition of NXTL the stock is driven down about $13 from the $94 level and if you accept that it should today be over $100 then it is nearly 20% below that figure even ,as I say, without any potential hiccups. Now is NXTL making money? Is the acquisition going to have a negative effect on WCOM earnings and balance sheet? Are there any synergy savings to be made after the acquisition? Has it got enough cash to finish its build out and fund its sales development? What about it's debt. Will WCOM have to accomodate any of the lenders by asssuming responsibility. Is NXTL grwoing its revenues and profitability as well as WCOM? Does NXTL look like there it is going to have to compete very commercially with others so as to tend to reduce it's operating margins? Is the NXTL business going to mean that there will be more acuisitions in the same business but overseas in even more difficult competitive markets? Lastly is it likely that there will be unforseen 'problems' arising a few months after the acquisition? The answer to all if not most of these questions seem to me to most likely to fall against WCOM. So if some of these issues arise over the next few months then I think $50's could be a real possibility. Regards, L