Action Alert!
Action Alert: Qwest (Redux) and Global Crossing
By James J. Cramer
2/15/01 12:21 PM ET
URL: thestreet.com
You have to like both Global Crossing (GX:NYSE) and Qwest. Both of these companies are going to make it, maybe make it big, and I think that Global's impressive earnings shows that we are closer to being out of the telco wilderness.
Not everyone is a loser. Some companies win, others lose. We all know that Verizon(VZ:NYSE), SBC Communications (SBC:NYSE) and BellSouth (BLS:NYSE) are going to make it. They have been grandfathered in.
I think we also now know that Qwest and Global Crossing are both survivors and, at this stage in the weakness, you have to make your move before these stocks get away. I have been recommending Qwest even though the gloom is so thick you can cut it with a knife. Both Qwest and Global Crossing have enough money to finish their build-outs and reap the tremendous profits that will come from being full-service networks.
When these stocks were flying we were cutting and running. Now that they are hobbled down here nobody wants them. That's as good as it gets.
Random musings: Yesterday I put out a trading alert to buy ConAgra (CAG:NYSE) into the weakness. You have made a buck and a half. That may be all there is for some time, so I think you can take the flip. (Remember, it wasn't an investment alert, just a trade!)
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James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. While he cannot provide investment advice or recommendations, he invites you to send comments on his column to jjcletters@thestreet.com.
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