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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Seeker of Truth who wrote (44184)1/2/2004 8:16:48 PM
From: elmatador  Read Replies (2) of 74559
 
Telecom offers to swamp Europe and Asia, says WSJ. Investors will be swamped in 2004 with new telecommunications stocks, as European and Asian governments seek to exploit the rebound in the industry's fortunes to raise badly needed cash, writes David Pringle in the WSJ. In Western Europe alone, analysts expect governments to offload nearly USD 25 billion of shares -- about six times the figure in 2003 -- by selling stakes in national telephone companies. To sell such large amounts of stock, investors and analysts say these governments may have to offer the shares at discounts, which is likely to put the value of the existing shares in these companies under pressure. The article says that many investors still harbor fundamental doubts about telecom, and that it isn't clear whether telephone companies serving increasingly saturated markets can keep growing steadily. (WSJ)
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