| Dr. Bob. throw LU, WCOM, and T in the mix. I've been buying the heck out of these guys, especially LU (average around 6 dollars). I have three friends that work for the company. Two in Columbus OH ( the office, not manufacturing place, they are programmers) and the other is my neighbor (network and customer logistics, travels all over kingdom come). They say the company is not going to go under with recent changes and will be stronger in the long run especially if the fiber section is sold. My neighbor said today that LU and other telecommunications companies went overboard with running and expanding networks without regards to whether they would be used immediately to serve customers. This logic has been halted and is a matter of time before the customers catch up with capacity. He said, in the long run, LU and other big companies will reap huge benefits by buying up smaller telecommunication companies at nominal costs for their already in place networks and customers (he said there are thousands of small companies serving local areas). He balks at the LU 2 billion in debt and said that, although expanding and thus debt was a huge mistake, it will be paid down quickly (didn't give me a time frame for how long debt will be reduced or possibly eliminated). Their stock options are really under water but they have been happy to get them in the recent downturn. I think he said the last options were given out when price was 12 bucks. At any rate, if one is willing to wait long term(possibly a couple of years), I think now is a good a time to buy WCOM, T, and LU. |
