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

To: maverick61 who wrote (49151)	3/15/2001 11:58:10 AM
From: American Spirit	Read Replies (4) \| Respond to of 57584

Agree on your picks but with a few quibbles. First, with both VZ and SBC wanting into LD it might be that the dark days for that sector are over. One of the reasons T, MCI and Sprint were losing money was a fierce competition for customers. All three kept sending me offers the past few years, $100 checks to switch, 5000 AAdvantage Miles, etc. So what did I do? Switched five times in 2 years and got my LD for free. They are no longer making those offers. T offered me $30 recently. A sign of the times. So if VZ and SBC want into LD there must be a good reason. The margins are improving perhaps. They're the experts, we're not. I doubt they'd want into an unprofitable business. And remember LD used to be VERY profitable. Maybe it can be again. If you like Corning at PE 50 that's fine. Great company. But why not look at beleaguered LU and NT as they have huge contracts to but have been beaten down much more. The moment either becomes profitable again they stocks will double. Or even if they forcast this profit. Just cheaper value picks at these low-low prices. As for wireless slowing down, sure, but every time a teenager emerges in the world there's a new customer. And they do yack a lot. Wireless growth may steady and ebb but it's not going away. NOK just reported they're doing fine. Last year 30,000 new cell phone customers a day in the US. Which was about 30% growth. So that slows by half? Still a good business to be in. Cell phones are one thing people continue using even in recessions. And next of course we'll see if cells evolve into Palm-phones or whatever. That's coming. But yacking will still be the #1 part of it all and VZ wireless will dominate the biggest markets in the US, or be bought out by VOD. Finally, I'm not the only one who loves VZ. Ross Margolies of Solomon Asset Management was on the Nightly Business Report last night and specified VZ as a top growth and value stock. He likes the low PE of VZ at only ll. He said the timing right now to buy these growth-value stocks. And this is one sector which never stops generating cash and will never go out of business. He also liked SBC. I might add that VZ wireless will either IPO or be bought out by VOD this year. That is in the works. Just a matter of when. "As soon as markets stabilize" the CEO says. Well today it looks like things are beginning to stabilize (knock on wood). I also expect VZ to join SBC on the Dow sometime soon. On interest rates and debt, if the Fed lowers by another point these companies will have much more opportunity to borrow cheaply. Even poor LU will be able to at a reasonable price. The lower they go the better for these telco companies. At these prices I basically like them all. If one recovers nicely they all will in sympathy. Let's hope the market stabilizes and rises into the rate cuts now. Let's hope VALUE is the name of the game going forward and that some big-time shorts get burned to teach the other lemmings a lesson, that you can't short forever at or near the bottom.