T2,
It's clear you are a bull. Tell me how the market is going to rally when all I see coming over the horizon is more bad news. Brokerages down grades again, telco sector in trouble, pc's growth slow, windows 2000 growth slow, cell phones growth slow (no margins), Wireless Internet slow (just plain crap), Long distance price war, Internet bandwidth price war starting, Junk Bond troubles, general Cap Ex spending slow down, Retailers having trouble, auto makers, the list goes on and on.
The problem is that as these factors hit the market they make more troubles. It's all cyclical...the market and the economy cycled up on this. It will now cycle down. The bad debt hammering it lower.
I was shocked that CSCO now has to resort to lending money to WCII like companies. I think this is an act of desperation and I think that's the real reason for the sell off. AT&T and CSCO/WCII news lead to todays slide. WCII doesn't even know when they will have profit EBITDA. CSCO had said in the CC not to worry about thier vendor financing...said they are very conservative. Sounds like a load of crap to me. WCII can't get money anywhere else and CSCO is desperate to keep the sales going.
Bambs
I bet the WCOM, AT&T, Sprint and all the little CLEC's will prove to be very poor CSCO customers over the next few years. |
