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.

Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: jopawa who wrote (9499)	12/13/2000 11:12:39 PM
From: Rupert	Respond to of 15615

"Ireland Links to Net's Future" wired.com "Ireland will link directly to ... state-of-the-art Internet research networks in the United States, using a segment of the fiber optic telecommunications network the Irish government acquired through an unusual partnership deal with telecommunications company Global Crossing. "

To: jopawa who wrote (9499)	12/18/2000 11:15:45 AM
From: jopawa	Read Replies (2) \| Respond to of 15615

Saturday December 16 2:09 PM ET Telecom Stocks Must Prove They've Hit Bottom By Jessica Hall NEW YORK (Reuters) - It's too soon to tell if the worst is over for battered telecommunications stocks, analysts said. The sector's slump intensified this fall, defying some analysts' predictions for a late-year rally. Industry leaders such as AT&T Corp. and WorldCom Inc. warned of dim growth prospects and intense competition. Any rebound for the group may be delayed until telecom companies release their first-quarter earnings reports. The companies must provide clearer growth guidance on the rest of 2001 and prove that their turnaround efforts are working, analysts said. ``Once we get evidence ... that things are not going to hell in a hand-basket, these stocks could start outperforming again,'' said Brian Hayward, who manages the INVESCO Telecommunications Fund. The North America Telecommunications Index (^XTC - news) has fallen more than 30 percent this year and has underperformed the broader Standard & Poor's 500 index (^SPX - news) by about 24 percent. The sharp sell-off rattled investors who watched telecom stocks more than double in 1999. ``The psychology went past negative -- it's now at bleak,'' said Henry Asher, a portfolio manager with Northstar Group. ``We now have a number of (company chief executives) in the field facing significant margin calls, which is hardly a positive indicator.'' Shares of AT&T (NYSE:T - news), the No. 1 U.S. long-distance telephone and cable television company, are trading at a low unseen since December 1991. Shares of smaller rival WorldCom (NasdaqNM:WCOM - news) are at their lowest level in three and a half years. The Baby Bells have fared better, with most holding steady. ``On balance, the industry still has a lot to do to catch up,'' said Ralph Acampora, director of technical research at Prudential Securities. ``Major damage has been done technically to these stocks. It's too early to pile in -- I need more evidence to suggest that they've hit a bottom.'' Weakness at some companies this year spread through the entire sector like a virus. Even shares of vibrant companies with strong growth outlooks swooned. ``Across the sector, they've been throwing baby out with the bathwater ... there are reasons for investor concern, but some good stocks have been thrown out with the bad,'' Hayward said. Long-distance companies, including AT&T, WorldCom and Sprint Corp. (NYSE:FON - news), have slashed their growth outlooks through 2001 due to falling long-distance calling prices and tough competition. Many small local telephone companies, known as competitive local exchange carriers (CLECs), ran out of cash just as the capital markets dried up. Several CLECs may be forced to close their doors if they don't get infusions of cash to pay their bills. Even wireless telephone stocks have slumped due to concerns about stiff competition and the potentially high cost of buying wireless licenses in the upcoming spectrum auctions. ``We're modestly positive on the (telecom) group, given how devastated the prices are,'' said Tim Ghriskey, portfolio manager of Dreyfus Fund. Investors, however, need to select their holdings carefully rather than buying broadly throughout group, analysts said. ``We think the regional Bells could have a good year. Long distance is a high-risk sector, but we're intrigued by the breakup of AT&T and WorldCom into separate stocks or tracking stocks. We're intrigued by the asset value of Sprint,'' Ghriskey said. Companies such as Sprint, WorldCom and Qwest Communications International Inc. (NYSE:Q - news) could be attractive takeover candidates for European carriers eager to move into the United States. Such moves could be prohibitively expensive, however, unless the European companies see a rebound in their lackluster stock prices, analysts said. The Baby Bells currently are the safest bet in the U.S. telecom sector, analysts said. Once viewed as stodgy utilities, these stocks have shown modest gains this year and provided a safe-haven for investors whipsawed by the turbulent telecom sector. The Bells should continue to benefit from shrinking competition and strong demand for new services such as high-speed DSL (digital subscriber line) Internet access and long-distance, analysts said. The Bells may face less competition in the local market if many CLECs fail. Meanwhile, their bread-and-butter local services provide strong cash flow to fund investments in wireless and data services. The long-distance market, despite the drop in calling rates, offers another potential stream of revenue once the Baby Bells gain regulatory approval to offer long-distance in their home states. ``Things are looking pretty good for them (the regional Bells). They've done very well for the last several months ... the (Baby Bells) appear to have weathered the storm -- they all have pretty good wireless operations and their DSL roll-out is finally starting to gain traction,'' Hayward said. INVESCO raised its weighting in the Baby Bells in the third quarter, as it historically does, and may not cut that weighting until it gets visibility on the rest of the telecom services group, Hayward said.