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 : Corning Incorporated (GLW) -- Ignore unavailable to you. Want to Upgrade?

To: AV8R who wrote (1658)	2/26/2002 10:55:25 PM
From: John Trader	Read Replies (2) \| Respond to of 2260

I am leaning towards the idea that the demand for fiber will rebound quite a bit at some point, but I am not going to bet on the prediction in this article - that cities will need 10 times the fiber of current long haul networks. It would be great if that is correct, but management has been wrong before, and there is also the time table to consider. The main question I think with GLW is whether or not this company survives this downturn. I wonder if anyone can shed some light on this. The debt to equity ratio for GLW is almost 1.0, and it is not likely to be easy to borrow money as we go forward. I am not sure when their debt is due. I am not qualified at this time to make a good determination of whether or not GLW survives, but my guess is that they will. Regarding the insider purchases, that is a plus, but no guarantee of future returns. Another stock that had a lot insider buying in recent months is AMCC. It was pretty much all in September - big purchases by one person - the CEO. This stock has a much higher P/S ratio, but a large amount of cash and no debt. Communication chips will certainly become obsolete, so inventory issues should be gone at some point. Fiber, on the other hand, will not wear out, but perhaps that is not a concern due to metro and foreign sales, plus sales due to improved fiber. I like the article, but I don't recall hearing any CEO speak negatively on the future prospects of his/her company. One thing seems to be getting better, there seems to be a growing awareness out there that the last mile problem is a big issue for technology companies, and to some extent our whole economy. We put a man on the moon 30+ years ago, but we seem to be stuck in the mud on this one right now. Maybe we need a speach by Bush similar to the one by JFK that started that effort. If there is enough resolve then surely we can solve this problem. Probably all we need is leadership and legislation. Maybe there will be a grass roots political effort that will help out at some point. Also, there is the UWB movement which could solve much of this last mile problem. That legislation has already been passed. John