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Technology Stocks : JDS Uniphase (JDSU)

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To: t2 who wrote (15863)1/4/2001 6:52:25 PM
From: Stocker  Read Replies (2) of 24042
 
That's true but any new CLEC issues are still going to come at high yields, at least for a while until worries of a slowdown subside. Those high yields crimp cash flow and place the co's at greater competitive risk. It's an uphill battle.

Renewed demand for junk bonds isn't there because the co's are doing better, it's there because yields got pushed very high. If the business situation doesn't improve, that demand will quickly go away as the high yields become more justifiable.

Soon the takeovers of the troubled co's will start and that would mean some spending allocated to network upgrades gets shifted to new acquisitions. The troubled players aren't out of the woods yet and neither are the equipment co's that feed them.
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