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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (34980)	9/24/2000 6:04:03 PM
From: Techplayer	Respond to of 56532

LTK, I just read a SSB report that was posted on a yahoo thread that states that from 1972-1998, MCI dropped in value by 50% 9 times but ouperformed the S&P 500 by 7-1 and the Nasdaq by 4.5 to 1 over that time. The primary driver of this cycle was increased spending to reduce costs to provide enhanced services to generate more revenue. Sound familiar? It also states that capital spending is moving from traditional voice switches to packet based products (the next gen equipment that is being highly sought after and priced in the market at this point). Spending as a % of revenue is expected to drop from 30% to 15-20% by 2005. That means that in 2-3 years, some of Softechie's comments will begin to become fact. It is far too early for this to happen now. Of course, spending could remain at present levels and service revenues will be on the rise also reducing this %. It also states that the telecomm industry has grown at about a 2-1 ratio to the GDP over that time while they expect that to increase at this point. I am not all of the way through the report yet as I printed it off the site...I believe that I was it on the FTHL thread. I do not disagree that cash can be tough to get for the CLECs, but they represent a very small portion of overall spending. The big guys will get the money when they need it in my opinion. tp