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

To: Dexter Lives On who wrote (12120)	2/10/2002 3:54:35 PM
From: axial	Read Replies (2) \| Respond to of 12823

Hi, Rob - "I've said this before on G&K and I'll repeat it here; capital scarcity is not visible until it's too late to do anything about it. Activity like we've seen in the last 2 weeks on the stocks of (for example) Worldcom, Qualcomm and Sprint are a shot across the bow; equity and debt markets will close to them unless they make a good business case for new investments. So far, they appear to be product and engineering driven efforts, not market-focused - that's a very bad sign." Rob, I'm in total agreement with your comments. Anyone who has put their ear to the ground since 2000/2001, and listened for signs of a resurgence in sectoral liquidity/capex has been disappointed. "...capital scarcity is not visible until it's too late to do anything about it..." We both started looking for the resurgence in (ahem!) areas of telecom other than 3G, a couple of years ago. Time has only confirmed the rapid and continued desertion of the sector. "...The only winners today are governments collecting juicy spectrum fees." In Europe, regulatory agencies are permitting accomodations and relaxations that amount to a return of the fees collected, in order to prop up an industry, and its jobs. The collective spasm of greed and myopia has has brutal consequences. Two years ago, a Forrester report forecast that it would take until 2007, for a return to profitability in Europe - and that report assumed that the 3G buildout could, in fact, be financed. Yes. Sectoral outflow: no doubt about it. Also, JMHO. Best regards, Jim

To: Dexter Lives On who wrote (12120)	2/10/2002 6:40:55 PM
From: Dexter Lives On	Read Replies (1) \| Respond to of 12823

Re: Capital Scarcity - the evidence is mounting ... Reduced Spending Still, analysts said that debt sold by equipment manufacturers is likely to fall further as the extent of investment cuts made by their customers becomes clear. Telefonica SA, Spain's biggest phone company, this week said it plans to halve its debt in the next three years, to 16.2 billion euros from 29.6 billion, partly by reducing investment. ``We expect further (spending) cuts both in fixed line and wireless,'' said Roger Appleyard, a credit analyst at ABN Amro in London. ``The impact can only be negative on Ericsson and Alcatel.'' European companies have ``the ability to cut capital expenditure over the next year to save 30 billion euros. That's 30 billion that won't be picked up by the equipment manufacturers.'' `Stay Away' ``They are definitely deteriorating credits,'' Appleyard said. ``We'd advice people to stay away. You will see Ericsson and Alcatel spreads converge at a wider level.'' ... quote.bloomberg.com