Frank, I'm beginning to think that it could be based on some perceptions of its being an overly plain vanilla flavor of player. No juice. Fiber, WDM, DWDM,TDM, ATM and IP. VoIP? Well, it'll be a while before they can bring any bacon home with that one.
It could be getting real old, real quick, for some investors. And the more glass they put into the ground, the lower the unit cost is to the user, and the lower the percentage of achievable margins. So, they will make it up in volume?
Selling off large bundles of raw capacity to competitors may have been necessary at one point during its cappin' up efforts < !?! > but it also diluted the clout they have over the longer term, which could only force pricing even lower, since they sold the munitions of the trade to their potentially largest competitors. Funny economics, wouldn't you say? It's made me think twice about them, from time to time.
In contrast, we see some interesting, yet still not fully decipherable counterpoint from LVLT, that seems to be attracting more capital lately, despite their problems in the early going.
I don't understand what's going on either, only offering some face value observations. Anything to them? You tell me.
Regards, Frank Coluccio |
