OT: FWIW, bullish article on Corning. I find this interesting, but I am not sure if his arguments make sense - just read it quickly.
individualinvestor.com
Bid & Ask: Sands of Time Favor Corning
By Tom Byrne (8/21/01)
The telecom boom is over. We over-built. We have more supply than we have demand. We have too much bandwidth.
Two years ago, these statements were unthinkable.
But I am not so sure they are true. Granted, we have more bandwidth than we need on a national scale, but the lack of spending over the last 18 months is going to force the pendulum to swing in the other direction. In short, we are going to need more fiber optics and fiber-optic components in the next few years.
There are two main reasons. First, spending shut down in June 2000, and according to Cisco Systems (Nasdaq: CSCO - Quotes, News, Boards) , spending will not resume until "at least" the second half of 2002. That represents a span of two years for anemic spending on fiber-optic infrastructure. That is a long time in the technology world because new technologies are introduced about every six months. Which brings me to the second reason. After a 2-year hiatus, in the second half of 2002, there will be dozens of new fiber-optic strands, components, switches and routers, traffic enhancers, and light-bending equipment that will make fiber-optic networks more efficient. This will force a spending boom on the new equipment.
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(click on link to read entire 2-part article) |
