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Technology Stocks : International FiberCom, Inc. (NASDAQ- IFCI) -- Ignore unavailable to you. Want to Upgrade?

To: Charly who wrote (2216)	4/30/1999 10:50:00 AM
From: FastC6	Read Replies (2) \| Respond to of 3541

Has the market already factored in a disappointing quarter? My take is that the upcoming report will be muddled again with confusion as to what the real earnings are. The one thing that will be clear is the top line number. I put forth a challenge to anyone here to try to decipher through the numbers to see if the acquisitions have all truly been accretive.....my bet is that they have not. . .

To: Charly who wrote (2216)	4/30/1999 10:58:00 AM
From: The Band Leader	Respond to of 3541

My two cents . . . I compare this company with FORE Systems which was recently bought out for a large premium (I realize that FORE is in a different segment of this industry). Here's what happened- FORE was a company which acquired a lot of smaller firms to broaden its product line and bring in good engineers. The acquisitions lowered earnings. I think that will happen at IFCI too. The lower earnings bring the price down, and the company, through shopping around for acquisitions, attracts the eye of the investment banking vultures. Eventually, the investment bankers can't resist getting paid twice, once for the company as an acquirer, consolidating lots of small firms, and then again when the acquirer becomes the acquiree. So, my take on IFCI is that earnings will be artificially low for awhile due to write-offs of R&D and goodwill of acquisitions. The stock price may move lower short term, but will take off in the long run as the true value of this firm is realized. From what I can tell, the recent acquisitions are dynamic, profitable firms in the best industry sector around. I think IFCI's management has done a better job of identifying these little gems than I could do as an individual investor. OK I gave three cents, but how can IFCI go wrong (long run)?