Rich: What you state is pretty much the reality for MCOM. Indeed, reseller WCOM is projecting to sell this product into all 46 metropolitan areas by the end of 2001. And once they get started in some of the big urban cores, like NYC, then things should get interesting in a hurry. Particularly since their focus is selling to the business community.
But therein lies the rub. The time between now and end of 2001. Currently MCOM has three major weaknesses which those shorting are exploiting. First, it hasn't roll-out "much" as yet, and their advertising in support of this has been.....well....to be kind, abysmal. Second is the telecom-wide financing debacle the market keeps nervously eyeing. Third, such access "helpers" as PCMIA's cards aren't available on a mass basis yet, and won't be until well into the first quarter 2001. And even if these devices are readily available now on a limited basis, who's gonna understand the use for them (see point #1)? So until all three areas are satisfactorily addressed MCOM is slow, easy game to short hunters.
And did I decide to short it at days end today, given this current slide? No. For two reasons. First, 90K ziggied through on the buy side in the final half hour. Granted this could be short covering, but it's the first time I've seen this in some time. Secondly, once a slide commences with MCOM it typically runs 5-6 consecutive days, and then bounces into a plateau. And given today was the 5th consecutive day of the current slide one could be forgiven for thinking MCOM is now due a bounce into a plateau....
Now let's see where it all goes tomorrow...
John~ |
