Jim Friedland at RSE Telecom Services 8/25 report headline:
"We Believe Historixc Undeperformers On The Way Down, Historic Outperformers On The Way Back Up - Time To Revisit The Sector". RSE tracks 5 crest and trough of 5 corrections from 1983,1987,1990,1994 and 1998 plus defines current crest as March 10 and trough as May 23. Current telecom
basket of WCII, TGNT, MCLD, ALGX, NXLK, MFNX, LVLT, Q, GBLX,WCG & TWTC was -49.9% down between crest and trough and +12.7% up in 3 months following while Nasdaq was -37.3%
down and 24.9% up. Telecom in 1998 also was more sluggish than Nasdag on way up trough-3 months but in each correction
recovery telecom services sector did much better than index
respectively measured again 6, 9, 12 and 24 months after trough. RSE notes it makes market in WCII, NXLK, TGNT, LVLT and MFNX. RSE bullish outlook led to it raising LVLT to strong buy and reiterating buys on MFNX, NXLK and WCII. |
