Cool robert, glad to see we are on the same wavelength, ragarding the earnings stability of Avanex going forward.
Robert the way I look at it is, if you are a telecom, either you find a way to keep on pushing the upgrade, of your broad band network infrastructure, or you fall behind the pack, and loose mkt share, to a better system.
Last April, when the mkt was in a similar fix as now, I responded boldly to a post that was carried on Silicon Investor's front page. The post was from Tommy Dorsey, the respected point and figure technical analyst.
Someone at CNBC must have read my post, because when I came into the house, CNBC was repeating word for word, a call to hold the 200 day moving average, I had made. I said, "It is time to hold the line", meaning the 200 day moving avearage. That morning, in the premarket, Leaman and others were buying the 21century stocks like crazy, and the futures were cranking. But when N.Y. opened, all the old 20 century dead wieght co.s, continued to sell off, the selling was too much, and it eventually, caused the rest of the market, to resume a down ward path.
However there was one sector that never fully sold off, if you recall, and that was the broadband networking sector. This sector still hasn't sold off to the level of valuations that would be considered more normal, for a high growth area of the past. I don't think it will, because the prospects of growth, for the leadership co.s, are global in size. Rather I think leadership will rotate, and as it does, values will be more drastically corrected, up and down, in those cases.
This up grade of the global communications/information infrastructure is key, without it, the roll out of the 21 century goes no where.
Everyone, who is anyone, knows this. Having a younger Republican leader, that wants to energized the Republican administration, is probably just what the world needs, right now. The NAS co.s created these new high tech innovations, but its going to take large established N.Y. Stock Exchange Co.s and a goverment that can work with them, to get the job done. |
