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Technology Stocks : John, Mike & Tom's Wild World of Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Logain Ablar who wrote (1910)	10/26/2000 9:25:30 AM
From: John Pitera	Respond to of 2850

Hi Tim, Cramer making very good sense in looking to the bond market to gauge the capex slowdown in telco and optics...... ------ We Need Heros 10/26/00 7:28 AM ET It's time for the equity research guys to walk over to the bond guys and talk. It is time for them to tell us what they are saying about these wounded telephone companies. They are credit nightmares. Their ability to finance will determine the next 20% in the optical stocks. They have the answers, not the JDS Uniphases and the Corning Glassworks. They know it. The bond guys know the answers and they should tell the stock guys. Someone has to break the eerie silence over the $200 billion in junk bonds that were sold to finance the 14 networks. And don't they know it. They have the answers. They know where the bonds are trading and who can and can't finance and roll over. They will protect those clients, but not their retail stock clients who could lose fortunes if the financing is indeed as closed as I think it is. Don't take my word for it. Here's what one of my best bond guys is saying: JJC , In your noxious session article you mentioned, "When we look back at this selloff I think we will be angry that the brokerages, who knew from their junk desks..." I think it would be worthwhile to remind people that they already knew. The spread of junk over treasuries is higher than in the 1998 crisis (Asia, Russia, Long Term Capital). The yields are huge and, in my mind, the low-quality debt market is a telltale where we're going. The stock analyst who goes over to the high-yield desks and tells what he sees will be a hero. The bond guys who speak up will be heroes. We need heroes.