Comcast is an HLIT customer.
T used to be an HLIT customer. In fact, in teh 4th Q of 1999, T accounted for about 40% of HLIT's revenues. As a result, HLIT's price skyrocketed to 157 in March 2000.
Then, the bottom fell out. T ran out of money, and stopped buying cold turkey. HLIT's earnings tanked, along with their price. T hasn't bought anything from HLIT ever since.
T is huge, and a merge with Comcast makes the sum of the 2 even huger. Comcast is an HLIT customer, and is launching VOD in many markets. Comcast is an avid buyer and upgrader, which benefits HLIT. Comcast announced increased spending for 2002, and they already spend in the billions.
With the aquistion of T, Comcast will be doing LOTS of upgrades. This will benefit HLIT.
The benefits from T won't happen for a while, as the merge won't complete until the end of 2002. Comcast won't be spending money on T until the merge happens. It will take time, but its all about the future. I am patient.
Regards, Tim |
