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Technology Stocks : 360Networks - TSX - TSIX -- Ignore unavailable to you. Want to Upgrade?

To: LAURIE SELINE who wrote (226)	5/19/2001 7:36:39 AM
From: Marty Lee	Read Replies (1) \| Respond to of 449

Good Day Laurie! "why are we sewering out so badly?" As your guess is every bit as good as mine, is that a rhetorical question? :) It might appear that Mr. Maffei is finding a way to fail. Or, as he says, TSIX is using these challenging economic conditions to position ourselves better going forward. Demand for the pot of Gold at the end of the Fiber Optic Rainbow has been put on hold. The whole telechasm sector is hurting (with the exception of STOR and the Baby Bells) for a lack of liquidity in the markets, a lack of connectivity to Joe and Jane Six Pack, and renitency to spend on next-generation equipment even when it's fatal. TSIX is building to meet demand as it comes, not before, while other players in the Networks' supply and demand chain wait for the climate to change. The amount of digital data out there will increase. At the same time, the costs of bandwidth and storage will dramatically decrease making it a less and less profitable business to be in. This will lead to consolidation in the markets and the inevitable economies of scale. Buying assets on the cheap is a far more attractive proposition for incumbent carriers than the assumption of sacks of debt required in an outright acquisition. And being able to pick and choose among the assets of different companies in bankruptcy reorganization is an advantage acquirers of going concerns don't have. TSIX should be as pure a play as GX. But instead, its butt looks positioned like a target for acquisition. Can we suppose that: 1. TSIX will be bought? 2. TSIX will merge? 3. Or brilliantly emerge back on a par with Global Crossing? Greg Maffei is telling investors that number 3 is the case. But, he's not made a convincing enough case for financial speculators. Instead, he's provided mysteries without further details. What's the $300 million needed for? Where are all our friends? Salaam, Marty