SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Applied Materials
AMAT 340.03+3.3%3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: StanX Long who wrote (61635)3/7/2002 2:55:54 AM
From: StanX Long  Read Replies (1) of 70976
 
Has Qwest hit bottom? 2002-03-07

Is the stock is too cheap to pass up?

dbc.marketguide.com

by Dave Sterman, equity research columnist

In recent quarters, the Baby Bells have been beacons of solidity in the otherwise chaotic world of telecom. Shares of Verizon Communications (VZ), SBC Communications (SBC), and BellSouth (BLS) continue to trade just below their 52-week highs, but beleaguered Qwest Communications (Q) stands out like a sore thumb. Shares of Qwest have fallen sharply, even though the company derives 80 percent of sales from Baby Bell-like local phone service fees.

For Qwest, it's the other 20 percent of the business that's the problem. The company's telecom wholesale business, which operates on a costly fiber-optic network, has been a massive money loser, and lenders have come knocking.

After falling 75 percent from last May to $10 in early February, shares fell another 30 percent last month as word spread that the company could soon face a cash squeeze. By failing to adhere to covenants established by lenders, it now looks as if Qwest will need to start selling assets and issue a large chunk of new stock, which means existing investors are set to own a smaller piece of a smaller company
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News