Pick Up This Call. Hang Up That One

Investment manager Joan Lappin scouts for value disparities in sectors that are heating up. She buys the undervalued and shorts the overvalued. With that strategy, she has achieved compounded yearly returns of more than 20% for 12 years. Lappin is high on IXC Communications (IIXC), a wholesaler of switched long-distance services for voice, video, and data. IXC, whose customers include AT&T, MCI, WorldCom, and Sprint, trades at 40 --or a market value of $1.5 billion.

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