SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : SDLI - JDSU transition
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: OWN STOCK who wrote (982)4/1/2001 8:33:25 PM
From: gbh  Read Replies (1) of 3294
 
Own, wow. Did you you ever miss what was said in that article.

First, I agree the heritage telecomms are in bad shape

Just what were you reading? The article laid out why these guys were the only ones that would survive. The only ones with enough cash flow to fund their debt payments.

The money spent by consumers and business for communications is so high, that a small advantage for a service provider can lead to tremendous cash flows, and market ownership. That is still true, even in this market.

This has just not panned out yet. As the article points out, the generated cash flows by the by the new IP-only carriers have yet to reach the point of being able to pay down their debt load.

today it is Copper and Sonet and switched services from the heritage companies (with all their Capex woes) versus VoIP on new fiber from start-ups.

Re-read the article. The assertion is that ALL or most of these start-ups will be gone (Chapter 7) or re-structured (Chapter 11) within a few years. It a farily simple equation. They have too much debt for their cash flows to cover.

From a fundamental standpoint, it all makes pretty good sense. I'm saying it will all come true, but we are ceertainly seeing the beginnings of it already with PSIX, ESPI and ICGX all already bankrupt, and others such as WCII and TSIX trading as penny stocks with very similar looking balance sheets.

And ask yourself a simple question. Which if these new IP-only carriers are at the top of your buy list?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News