Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: fedhead who wrote (7823)	8/1/2000 8:02:39 PM
From: pater tenebrarum	Read Replies (3) \| Respond to of 436258

Anindo, i agree that LU has specific problems...my comment was actually merely based on the fact that LU and the Dow have for quite some time presented a very similar chart picture, with LU slightly leading in time. it was in no way a comment on the telco equipment sector as such. i disagree btw. with the currently widely held view that the sector will be somehow exempted from the economy's performance in general. especially since i have it on good authority that the over $500 bn. in telco debt that has been issued over the past year is among the shakiest debt around. many of the big equipment cos. finance the sale of their equipment, and the recipients of this largesse (which is a method to 'make the numbers' as prescribed by WS) are in many cases doubtful accounts. of course there can be no doubt that this is a huge growth area, and that the internet infrastructure build-out is going to continue, etc. but i don't want to re-hash what everybody knows anyway - i still believe that there will be a shake-out down the road, with many of the marginal players either getting bought out or disappearing the old-fashioned way, and it will likely not leave anyone untouched. imo the recent spate of cautious guidance from the likes of Motorola, Nokia, Ericsson, Wcom, T, etc. can't be just ignored. it speaks of overoptimism coming home to roost - and the pile of debt will come home to roost as well eventually.