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Microcap & Penny Stocks : Profits in the highly competitive phonmarket?
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To: hobo who wrote (1)10/14/2002 8:53:58 AM
From: Alfred W. Post   of 2
 
To me it is obvious that the difficultlies in the telecommunicationsmarket is clearly oversupply. There are so many parallel fiber optic lines from one place to another that the usage for anyone of them is so low (i SEEN NUMBERS OF 10-15% USAFE) that it hardly if at al covers costs. So there is the answer to your quetion. Owner/Operators of such lines do NOT make profits. But if a company just leases such lines. On the other hand offers of telecommunications ttat do not own the lines and are not burdond with paying off for them can crofit from the desasterous situation by bidding very low for the lease of thes lines or acceess to them. Their cost sructure is very low because their cost of hirig the lines is rediculous and averybody is offering them so there is no difficulty of getting offers. At least so it seems. Any phone company operating in this manner is bound to make money and can easely compeat with the owners of th lines. As I understand it, this is the modus operendiy of TALK and that seems to be the reason why ghey make money and predict making even mpre of it. I started a thread on it in december when the stock traded at $.-50. It went up to $4.-- but pulled back to $2.-
If my reasoning is correct this pull back should be a terrific buy signal. Agree??? Fred
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