Hi, melloo. I haven't been following DSL.net recently, although I've still got the thread bookmarked. Don't confuse the company with the technology. DSL is a service provided by lots of companies, using equipment made by lots of other companies. The company is a mid-tier provider that probably went public with the expectation that they would eventually get taken over by a larger player. As I said, I have not been following them, but I believe they missed some growth or installation targets during the Spring, accounting for the lackluster stock performance.
More generally on DSL, you might keep in mind who has the power. The telcos have enforced open standards, and kept a lot of suppiers in the game. This has driven down the profitability of the equipment suppliers. The telcos, meanwhile, are in a squeeze of their own--from the competitive carriers and long distance providers. The result has been a real dearth of attractive plays in the area.
For further investigation, you might want to read some of the Gorilla Candidates thread here on SI (as well as the books Gorilla Game and Living on the Fault Line). Peter Lynch's book, One Up on Wall Street, is 10 years old, but I recently reread it and it's still terrific. Also, take a look at Motley Fool's Rule Breakers discussions, which provide guidelines for finding superior companies.
All of the above offered for free--and it might be worth what you paid for it. :o)
Good luck, and welcome to SI. |
