WorldCom Holding
WorldCom
(
WCOM |
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PowerRating) is exhibiting some of the same characteristics as the
semiconductor index
(
SOX.X |
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PowerRating), in that while tech in general continues to hit
new lows, the SOX and select telcos like WorldCom are still holding up
relatively well. WorldCom bottomed in December, and has been clawing its way
back since.
After reaching its Jan. high of 23 1/2, WorldCom pulled back and found
support around 15 as it traded in a range. WorldCom recaptured its 50-day moving
average on Tuesday while volume has remained strong. On Thursday, the stock managed
to rise 1/4 to 19 1/16 on heavier-than-average volume. I will be watching for
more follow-through on increased volume.
WorldCom used to be a Wall Street favorite and peaked at 64 1/2 in June 1999
and even traded as high as 49 31/32 in July 2000. The collapse in telco helped
lead the Nasdaq as a whole lower, as all the telco suppliers continue to hit new
lows. Perhaps WorldCom has bottomed and addressed its problems enough to lead
the information revolution back from the brink. But for now, it’s holding.
Until Friday,