I realize that the pendulum swings both ways, but this is getting absurd. NUFO has $8.00/share in cash, business is better than expected, they have raised their revenue and earnings projection for 2001, and fiber optics is still one of the highest growth sectors of the market.
With everyone concerned about a slowdown in CapEx by the telecom carriers, a little more digging reveals some interesting items. CapEx includes such things as "poles and holes", voice equipment, etc. I believe you will see a slow down in these areas. On the other hand, optical equipment is the ONLY technology that can move data. I am a believer that data traffic will swamp voice traffic, and the carriers will HAVE to replace their voice architectures with data architectures. From a carrier competitive front, I don't think carriers will cut back on their spending for data equipment because that equipment is what will generate future revenues. The world is rapidly moving towards data traffic and I would not want to be a carrier who was not participating in it.
Didn't WorldCom say they would INCREASE their spending on optical next year?
Bottom line, I am backing up the truck to buy today. May go lower over the short-term, but I could never pick a bottom. Six months from now I think NUFO will be much, much higher. |
