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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: zbyslaw owczarczyk who wrote (4223)	1/9/2000 3:18:00 PM
From: Bosco	Respond to of 14638

<somewhat on topic> G'day all - hi zbyslaw, that is an interesting take. Thanks. When I look at the interest rate and build out scenario, I think there are other forces at work here. For instance, while the RBOCs and the deep pockets are not cash strap, many of them have a lot of commercial papers out there, and they continue to float corporate bonds regularly. OTOH, while you are absolutely dead on about the potential impact on the new CLECs, there are alternate financial schemes out there. For instance, NT is known to be willing to receive compensation with equity stakes [interestingly, I suspect it is not restricted to NT in particular and the sector in general.] Big vendors like AOL and CDO [voluntary disclosure, I don't have AOL but do have CDO] practically make a highly profitable side business by doing just that. In final analysis, I think that the large caps and/or with the good balance sheet will handle it well. The ones with too much leverage, especially those who do not have a high currency in stock price, will be the weaklings in the midst of a darwinian shakeout [I should know, since I ve bet so many times against the market and lost :(.] best, Bosco best, Bosco