|
Fred: I just couldn't let this one pass. I'm sure if Pat were around
she wouldn't either. Investors buy stocks for many reasons but
most large investors tend to think of stocks in broader issues
than if a company gets this contract or that one. Especially
investors of the kind that moved the stock last week, that is a
large mutual fund or funds that it appears is (are) taking a
substantial position in AMTX. I suspect that it is more likely
another issue, the upcoming announcement by the FCC, that really
prompted the stock move. Apparently, ATT has now agreed to cut
long distance rates by a substantial amount over the next 18
months as part of a final agreement that will result in a fair
pricing policy for leasing of the local loop from the RBOC's.
Apparently, this agreement is being finalized for announcement
on Thursday, May 8. Once this pricing policy is put in place,
just about anyone can lease local loops for the purpose of
installing ADSL, MCI, ISP's, Corporations (for intranets), etc.,
without waiting for the RBOC's. This open competition will, in
my opinion, lead to more rapid deployment of ADSL than anyone
expects at the present time because the cost per speed increase
ratio will result in a tremendous overall economic advantage.
If I'm correct, the action should start in the next month. If
I'm wrong about this, then perhaps we all will get another
opportunity to add to our positions at lower prices while we
await large orders from the RBOC's when they decide to deploy
later this year.
Just Call Me Doc
PS: While in my bunker sipping Grand Marnier, managed to add a
rather large amount to the family position, mostly for under
$10. Wish I had some of Pat's Dom Perignon in there. Rather
prefer Roederer's Crystal but the price has become a ripoff.
By the way, the above is just my opinion, although the FCC
agreement has been well documented in the New York Times
and todays Wall Street Journal. |
