MCI remains the darling of growth stocks despite price war with competitors
Article Abstract:
Investors have tended away from MCI Communications Corp after poor results in the 4th qtr of 1991, and a price war with AT&T generated more pessimism. But MCI is doing well: the company is competently managed and continues to grow. The industry itself is growing, even during an economic slowdown. MCI's shares closed at $28.50 a share on Aug 7, 1991, which is 13 times estimated 1991 per share earnings and 10 to 11 times earning estimates for 1992. These numbers ought to indicate a weak company or a weak industry, but the industry is growing eight percent faster than the overall economy. MCI has gained back the market share it had previously lost, with some extra, so that MCI's share of the US market is now about 15 percent. John Shapiro of Chieftain Capital Management foresees a time when AT&T and MCI will act as a 'benign oligopoly,' and then, MCI's returns could be enormous.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Philippine phone monopoly's shares will resume rise, some analysts say
Article Abstract:
Philippine Long Distance Co (PLDT) experienced a surge in stock prices in Jan through Jun 1992, and analysts say that the company's stock values will continue to increase. PLDT's stocks rose 64 percent in the six month interval to peak at 1,275 pesos, or 52 US dollars, each, and now are valued at 995 pesos, a decrease of 22 percent. Analysts say that the company's stocks will rise in the 4th qtr and that the company's long-term outlook is good. The country's economy grew only one percent in 1991, but PLDT's net income grew 52 percent and revenue 29 percent. In 1992 the Philippine economy is growing at a rate of two percent, and PLDT's earnings are expected to grow 13 percent on 12 percent revenue growth. However, investors' concerns about a preferred offering of convertible shares, plus the peso's appreciation, have slowed PLDT's revenue and net income growth.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Centex Telemanagement seen as vulnerable to phone rate restructuring in California
Article Abstract:
The ability of telephone service company Centex Management Inc to compete will diminish when the California Public Utilities Commission opens local toll calls to competition. Centex offers a variety of telecommunication services for small companies and has hitherto prospered by buying telephone services at bulk rates offered to large users and providing savings to small users. Rates for local calls in California, where Centex does 80 percent of its billing, are expected to decrease between 30 and 40 percent. Centex expects to expand into the East Coast, but attaining profit margins in competitive environments may prove difficult.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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