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Technology Stocks : Adelphia (ADLAC) Another Cable Modem Player
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To: JF2155 who wrote (32)8/4/1999 11:16:00 AM
From: lml  Read Replies (1) of 41
 
Doesn't surprise me. Are you on the East Coast?

IMHO, they're in over their head. Too much plant to manage & upgrade. Inefficient economies of scale. So what if they're a "large" MSO. So what if the Rigas family has capital. I don't give much weight to these arguments because when you compare such "assets" with the competition - T, TWX, CMCSK, COX, Charter,, which sets the pricing model, they can't compete. Either they need to charge more for their services . . . or they deliver a "less expensive" service.

IMHO, their upgrades are going to be minimal & their service to match. Dissatisfied subscribers will eventually drop the service in favor of DBS & DSL as it becomes available in their area. This is basic economics. Their only "out" s to sell off their assets before they lose subscribers in droves. I give them about a year before management admits that they cannot afford to manage their assets to a degree necessary to compete & that a sale of assets is the best way to maximize shareholder value. Management must realize that competitive pressures will exist from the DBS providers, & soon, the RBOCs & the CLECs with respect to broadband Internet access.

This is JMO. It is only my take on what's in store for ADLAC. I may be wrong. Others will disagree. But everybody is entitled to their view on a stock.
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