Hi Steve,
Re: WCOM and the Telecomm industry
This is the latest from an old line brokerage:
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Samson Schmit Bologna, 11/01/2000
Barring negative slant from those who could influence this stock's price, there's a fair chance that the price could appreciate assuming that their business improves under the proposed restructuring.
Further, should unforeseen forces, either positive or negative come into play, continued volatility might prevail. It's quite possible that we've not seen either the highest or the lowest that this stock can go. That said, we should expect to see changes in Price/Share as time goes forward.
The entire industry is in flux right now and that causes some stocks to fall into a pattern of less that beneficial cycling for those who buy and hold. However, not knowing the depth of the flux, we can't be certain whether we're seeing cyclical action or an actual trend. Should the trend turn out to be positive, then this is a great opportunity. If, on the other hand, the trend turns out to be a long term negative, then we see this current situation as one to avoid.
Our fundamental and technical analysis shows that this stock could move either way. So, our recommendation is for those already in ownership to hold their positions if they don't have good reason to add or sell shares. Those interested in speculative gains should buy, while those who are risk averse should avoid this stock until we see at least three solid quarters of growth.
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I hope this article helps to clear the thinking on this subject. In my own case, I added some more shares today, about 20% addition, but what do I know???
Best regards,
tom@analysisRus.com |
