There is a reason why MCI sold their internet
business to CWP. Many people, including top telecom
analyst, say that MCI did this because they are confident
that CWP will not really be a threat to them in the
future for internet sales. Many people say that MCI
Worldcom will eventually win some of those internet
customers back. I know people who work for CWP and they
have told me that CWP did have an internet division at
one time, but they decided to can it. I was told the
reason was not a profitable venture. Could you believe
that! Internet business not profitable. I believe that
many of CWP's new internet customers will cancel their
services and go elsewhere.
I'm not sure if your comments on the C&W internet
business is correct. If you visit the C&W USA web site,
you can see map of their internet lines and they seem
to be extensive, especially on the east coast.
Furthermore the high bandwidth lines under the Atlantic are
laid by a joint venture between Worldcom and C&W.
Lastly, C&W is one of the largest internet businesses
outside of North America, and particularly so in the Far
I agree that C&W's U.S. business is not very big.
Here is another way to look at CWP's desire to
purchase MCI's internet business. It makes them that much
more attractive to a potential buyer.
doing everything in its power to be lean and profitable
as posssible. The CEO has made it clear that he
would welcome a suitor.
One of the main reasons
Gabelli likes the stock is it takeover potential. (He
also thinks that it will be a major long term
international player even without a merger).
profits becoming more difficult for the US telcom
companies to come by, CWP opens up the whole world for
The next few months (unless Hong Kong tanks), should
be good for CWP shareholders.
It is sad to see clueless analysts and their
Since CWP will be up +25% in less six
months from that "expert's" view, the "analyst ratings
industry" will once again look like the random BS that it
is. Let me remind you that last fall Bear Stearns top
telecom analyst has CWZ as a neutral (price then $22
price today $38!!!). (Lehman by the way re-iterated a
"buy" this week on CWP).
Now my "...scientific" response to Alex Brown's
ratings. (GR stands for GreatReturns, AB for Alex
-- British Telecom: AB->strong buy; GR->Boring
and Bureaucratic, thus Avoid
-- Cable & Wireless:
AB->market underperform; GR->dynamic and diversified,
-- Deutsche Telekom: AB->market
underperform; GR->Buy it before buying BT
AB-> market underperform; GR->Does not follow/no
-- France Telecom AB-> market perform;
-- PTT Nederland: AB-> market perform; GR->no
-- Tele Danmark: AB->market perform; GR->Who
-- Telecom Italia: AB->market perform;
-- C&W Communications:AB->market perform;
GR->I agree on price appreciation, but for agreesive
investors I would rated accumulate.
(PS: I apologize for
the long messages but Alex Brown totally pissed me