Yes it time for WSTL to make its move. Consider the short interest to
daily volume is at all time highs. And short to days to cover ratio is at all time highs. This means a lot of shorts are lazy, and think they could always buy at the 4-5 dollar level. Well, if Bell Atlantic signed WSTL for 5 years, (not 1 order), doesn't that imply Bell Atlantic wants to secure production and business sevices for the longterm?
Obviously, the baby bells wants to compete with ATT-At Home/cable modems. DSL can use their existing infrastructure and provide equal high speed acesss to the Internet. Sounds to me, like the Bells have made an internal decision to go ahead with longterm plans, and the WSTL contract was to secure resources for the future as they get scarce. This is good for WSTL, it is a vote of major confidence in their products and services. The stock is been lanquishing, but as one can see what a couple of trading days can do to alter its stock price to the correct equilibrium level. Give it 2 more months, and see if you can buy it at 3 29/32! |
