Once again, as funds "give up" on telecoms. . . there is increased activity in "NEWCOMS". Quest has attracted many eyes, as it maintains a high level of growth. But I am talking more about the New Communications stocks. Broadband companies that will make money by connecting us one to another at higher speeds and with greater capabilities. . . .like HLIT, MCOM, ISLD, AETH, INSP, TLGD, NXTL, QWST, LMG.a, etc.
For nearly a month now, I've been reminding everyone to keep their eyes on Web Hosts [Internet Hotels, Web Farms, etc.] like GENU, EXDS, NAVI, EQIX, USIX, etc. There is great interest in this sector.
Similarly, companies like BEAS and BVSN help corporations to reach their customers more effectively through a variety of e-commerce solutions.
The point of this post is to consider broadening our view on telecommunications. We have always thought of telecom as something run by A.T. & T., Sprint or WorldCom[MCI], etc. But the entire foundation of telecommunications has been rocked. Suddenly there are a multitude of bright companies with sharp ideas for communicating in a new way. This has resulted in reduced cost for the consumer. . .and the resulting reduced revs and earnings for the old guard telecoms.
But the new guard has not invested billions upon billions on infrastructure. They do not need to see similar revenue models to become profitable. They are more efficient. And they still have all their growth ahead of them.
This is nothing new to most of us who have been tracking broadband related stocks for literally years. . . .but for those who have not considered the impact of broadband on both our personal lives and the corporate world. . . I would urge you to spend some time on DD on this subject. Read all you can to understand that things will never be the same. And the winners list will be made up perhaps entirely by names that were not even known as little as 5 years ago.
So as we track the increased activity of the Newcoms, let's not forget the impetus behind their moves. . . .
. . . Revolution!
Rande Is |
