Can you say dead money on networkers. Here's news:
DJ Lehman Telecom Analyst: See Cap Spending Down Through '02
03 May 12:37
NEW YORK (Dow Jones)--Expect communications equipment companies to see tough
times throughout 2002, Lehman Brothers telecom equipment analyst Tim Luke told
CNBC Thursday.
The climate is much different from the boom period of 1999 and 2000, where
"phone companies were increasing their investments in equipment by more than
30%," Luke said.
"We've now seen a year this year in 2001 where the phone companies are
cutting back on some of their spending," he said. He expects spending will be
down about 5% for 2001 and down 10% to 15% in 2002.
The corporate enterprise market may be more positive, though, he said.
Luke recommends investing in Qualcomm Inc. (QCOM), Nokia Corp. (J.NOK) and
Comverse Technology Inc. (CMVT). Cisco Systems Inc. (CSCO) is also a good buy,
he said, even though the stock is still pretty expensive.
-By Hollister H. Hovey, Dow Jones Newswires; 201-938-2007;
hollister.hovey@dowjones.com
(END) DOW JONES NEWS 05-03-01
12:37 PM |
