Mentioned this earlier but thought it was worth repeating now. Yes money flows form one sector to the other, what's hot one day is dumped the other. Maybe impossible to consistently guess where the next move will be, but being ready to jump on sectors that are being punished has been one of the most successful "plays" I have made in my investment career...
Here is my earlier post:
1. Voice on the Net (VON) event coming up in September in
Atlanta-run by Jeff Pulver.
pulver.com
All the internet telephony-and next gen telco players will
be there-brightest people in the business wrt internet telephony
and how it will evolve.
The internet telephony infrastructure guys--ITXC, DDDC, to a degree
GENU etc. will at some point become valuable as the pressured AT&Ts
and WCOM long distance divisons look for more economical backbone
i.e. managed private internet backbones (itxc, dddc, etc.) to reduce
transport costs.
2. Note pressures on WCOM, and AT&T - problem is long distance
revenue and margins are falling out from under them, and the LD
revenue is their dominant revenue stream--these guys must add
value data services to their service offerings-that includes
web hosting, etc. Hence the WCOM, Intermedia/DIGEX aquisition-
this is a big deal-.. The other guys like DRIV who have significant
customer base and are doing internet hosting for busineses, and internetweb site building--will become more valuable. DRIV has over 1000 customers- fairly large ones.
The Atlanta event may have a short term positive influence on the
whole DDDC/itxc / internet telephony sector - Wall street guys and
investment banks are starting to show more faces at the events, and learning about internet telephony infrastructures. |
