"Largely exempt from such misfortune" may be true, however, when GX competitors throw in the towel and default, it will put the fear of God in many a telecom investor and bondholder. That's my personal speculation...the next fear induced bottom should be the one to buy, as the survivors will rise from the ashes and prosper. Remember, there is still a tremendous amount of debt out there, even among the most established players, such a T, BT and DT. When things get bad, the bids will dry up, and nobody will want to touch anything with a heavy debt load.
Looking back in hindsight, I never would have thought GX could have breached $20, much less $10, so nothing would surprise me now. I still don't understand that day when GX went sub $9 on heavy volume...maybe some fund was forced to liquidate? I maintain that the bottom will be in when a few biggies blow it, such as LU. That's what makes a market, right? |
