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

To: Dale Baker who wrote (4454)	5/13/1999 11:12:00 AM
From: PDL	Read Replies (2) \| Respond to of 11568

Research Note from PaineWebber analyst Eric Strumingher dated May 12th with WCOM at a current price of $86.06 (just an excerpt from a detailed two page report): Rating: BUY Investment Opinion: "WCOM is the cheapest large cap telecom services stock we follow. Where else can you find a company with $30 billion in sales in a non-cyclical, annuity business that is growing at 2X the rate of its fast growing industry and 4X the rate of the GDP? We believe that WCOM can sustain top-line growth of 15-20% and EPS growth of 20% for the foreseeable future and that the stock can trade up to a 35X multiple on our 2000 EPS estimate of $2.95 or $100 per share over the next 12 months. The recent wireless drama involving Nextel (NXTL-$38.75) temporarily caused us to take a more cautious near-term view on the stock, but we believe that this is no longer warranted: we doubt that any major wireless transaction is likely to occur in the near term. In fact, we look for the stock to take several steps forward before it takes the eventual step back due to a dilutive wireles acquisition..." Also: "we would buy the stock ahead of the June 2 analyst meeting in New York." My only disagreement is with the conservative 12-month price target (of $100). I suspect this is just an analyst covering his backside and not wanting to go too far out on a limb with the market still in "over-valued" territory. JMHO.