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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: zbyslaw owczarczyk who wrote (11385)	6/11/2001 9:01:08 PM
From: Rob S.	Respond to of 12823

I don't think that will happen anytime soon. The market for telecommunications/networking equipment grew partly because of false expectations for the profitability and use fullness of the Internet. A significant portion of investments did not pay off. When demand comes back it will be much more tempered by past experience. We are in a deep demand/product cycle that will take time and lower prices to work out. Lower prices are needed to make some of the Internet and telecommunications business dreams more feasible. Time is needed because many companies are in debt and large amounts of used equipment, excess capacity, continued slowing, etc. needs to be worked through. Will telecommunications and the rest of the electronics industry rebound and eventually soar? Of course it will. But this won't happen for at least 18 months and probably longer. The big driver will be newer generations of products and companies that work . . .cheaper and a re-stocking of corporate money inventories. Another trend will be accelerated competition. Already the fiberonics companies are jockeying back and forth for key markets on a quarterly basis. Who's on first this month? Cisco or Juniper? Don't guess too soon because leadership can change quickly. Tech stocks are still very highly over-valued and the outlook is for more downside in sales and earnings revisions and then flat to slow growth for several quarters. Remember, the whole world doesn't eat chips for breakfast. There are other things that run the world besides inflated technology companies. I love tech. I am a tech person. But let's get off our high horse about these stocks.