Dave, I must admit, I'm shocked at how far its dropped...and the size of the drop today was most disturbing for what I consider one of the top companies in the sector. Serves me right for stepping out of my usual value mode earlier this year. Still, look at the long run price of STXN, and consider that rarely does it go below $10...and that because of the Asian crisis when everything was, as lazarre refers to it, "fried rice". Fair value for the stock according to S&P is around $18, so in retrospect, it has probably been overbought this year. This is the silly season, so I guess we should expect some pain, perhaps more.
Unless you expect the telecomm sector to completely crater, I'd guess we are getting into bargain territory.
Consider all those wireless liciences sold in Europe, demand for wireless data access here in the US, and the lack of wired alternatives in the developing world. If a CLEC is going to put in wireless multipoint installation, how are they going to get bandwidth to it? Run fiber all the way up some mountain? Possible, but the easiest way to service such installations is with an DMC radio. |
