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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rick Buskey who wrote (32535)	8/20/2000 11:41:15 AM
From: DlphcOracl	Respond to of 57584

Richard Buskey -- I respectfully disagree with you on this one. The entire telecommunications sector has been one of the worst to invest in this year. This is true across the board, whether we are talking about large telecom companies (T, WCOM, Q, VOD), the Baby Bells (Bell Atlantic, SBC), the DSL providers (COVD, NPNT), the CLECs (TGNT, NXLK, WCII), etc. While several of these stocks have been excellent investments in the past, I think there has been a "sea change" this year in how these companies are now perceived by the institutional investors, which will make them laggards going forward. The telecommunications "revolution" and buildout is taking far longer than imagined, is far too costly for these companies to be profitable (or profitable enough to justify their valuations). Look at the staggering figures paid at the wireless auctions in Europe and you'll understand where I'm coming from. I think there are MANY sectors that have far more investment promise and I have pruned all these losers from my portfolio. Fortunately, NXLK and GBLX were the only ones I owned. As I've stated in other posts, the Street has grown impatient with companies that are deeply in debt, deeply leveraged, and are years away from profitability. I think NXLK's move from $31 to $39 was a "dead-cat bounce" and do not see NXLK outperforming stocks in sectors such as fiberoptics, internet infrastructure, "New Age" utilities, contract electronics manufacturers, telecommunications semiconductors, chip-equipment makers, information storage, and mobile internet over the next 12 months.