Hi Bernard,
I was looking at WCII and TGNT. Winstar is more established than TGNT, I got started just by reading the Barron's article which you mentioned. They do make some good points, though. the CLECs are very interesting. but also very risky given their huge ongoing losses.
The merrill Lynch reports by Hoexter have a very interesting layout of the numbers until 2009, and by mid next decade these companies should become very profitable. If this model is true, we should truly sell everything and buy CLECs.
But, their losses are a problem: if one of the major CLECs goes under, it will a problem for the whole industry, and the baby Bells will be watching while snoozing...
these are not dot.coms selling candies over the internet and burning cash, they are really building a serious infrastructure, but this financing issue could spell trouble.
I hope the Barron's article will be useful for some CLEC to review their financial plans more carefully. There is no new economy, in my opinion, but good and bad economy, be old or new. Making ends meet is proper to any business, in any time and place.
will see what happens,
best luck
Alfredo |
