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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: r.edwards who wrote (39493)	2/20/2001 3:08:53 AM
From: Jacob Snyder	Respond to of 54805

re: "Deregulation has led to low BTE for comm. companys like WCOM " Yes, it was clear when I bought WCOM last year, that long-distance phone was a low-margin commodity, and might even evolve into a freebie thrown in with bundled service. But WCOM,FON, T, the not-so-Baby Bells, and a herd of CLECs, was sinking 100s of billions into infrastructure for new services that were not supposed to be commodities (web hosting, data, wireless, etc.) Even the equipment vendors (CSCO, LU, QCOM, NT) were willing to be real helpful to keep the rollouts going all-out. QCOM's satellite phone venture comes to mind, among many others. They couldn't all be wrong, could they?.........say it ain't so.....please....... Unfortunately, the market has now decided that: (1) the new markets, too, are going to end up as commodities (or fail to find a market at all, like sat-phones) (2) too much new capacity and infrastructure has been put in, or, (worse yet) partly put in, and (3) too much money has been borrowed for all of the above, and (4) now there might be a recession and the bondholders have this sinking feeling about ever getting paid back........