Thanx for the article Merryfield,
The article from lightreading.com quotes analysts with doubts about the viability of 360 Networks. Nevertheless, analysts have a nasty habit of making too many remarks without some minimal justification. The article from lightreading.com provides us a fine example.
""They are in a tenuous situation," says Aryeh Bourkoff, director at UBS Warburg. "They still have a lot more contracts to sign in order to meet their revenue and cash flow targets for the year."
What is "a lot?" Upon whom does Bourkoff rely for this "inside" information?
"And the carrier's forging ahead on expansion plans for these long-haul links, even as it struggles to install 35 major metro fiber rings worldwide by mid-2001. In short, it needs lots of new customers to make good its ongoing investment.
Struggles? In what sense? And again, TSIX needs "lots of new customers." How many do they lack, if any at all? No one sites the source of their information.
"As the company pursues an aggressive buildout schedule, however, a glance at 360networks's most recently published balance sheet (see 360networks Posts $158M Q4 Revenues ) shows some unfavorable financial metrics."
A "glance" at a company's balance sheet is not sufficient to judge its "financial metrics." Analysts may like to sound mathematical but instead they "glance" and fail to account for all the "parameters" as they haven't the time nor inclination.
"There's a question mark hanging over 360networks," says analyst Vik Grover of Kaufman Bros. LP. "They clearly have an issue around how they'll differentiate themselves and build a big company," he says.
Vik Grover clearly covers his ass by saying what amounts to nothing. That's what analysts do.
The article goes on blaw, blaw, blaw.... "At the very least, 360networks will need to refocus, analysts say, and determine how to make the most of what it's already got."
Wow! The company itself has been saying the same for months. What more do analysts have to tell the stockholders that they already know?
Sincerely,
Marty |
