re:the telco equip companies are at much greater risk here than the strongest telco services companies.
I've been thinking, and posting this, for a while. The Street seems to have forgotten that the telco equip companies sell to the telcos. The PEs for CSCO and WCOM are a disconnect, and will be rectified by a massive decline in CSCO's PE, or a massive increase in WCOM's PE. There are no other possibilities. I bought CSCO in early 1997, at a PE of 30, and sold it last year when it hit a PE of 100. Now, I'm buying WCOM. Who knows, maybe someday I'll get a chance to buy back CSCO, at a reasonable PEG. |
