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.

Strategies & Market Trends : Joe Stocks Trader Talk -- Ignore unavailable to you. Want to Upgrade?

To: Michael Young who wrote (375)	2/27/2002 1:45:55 PM
From: Joe Stocks	Read Replies (1) \| Respond to of 787

Mike, These power producers I look at differently than the fiber optic stocks. The fiber optic folks way over-estimated the potential of the market. Not only did they way over-estimate but they didn't have a good handle on making that "last mile" connection nor the demand for the product based on what they would have to sell it for. On the other hand the power producers came to the front because of shortages in the market. Granted they were bid up extremely but they still have a very strong demand for their product. Due to deregulation we cut capacity (didn't expand it fast enough) that it caused shortages. The "pipeline" capacity "cushion" was gone. That need for growth and additional capacity is still there. I think I have seen figures that capacity needs to be increased 20% to satisfy the needs of the next decade. Electricity and a sufficient amount is a must have. I get along just fine with whatever fiber I got in my diet right now. As long as the population grows and we build new homes, we will need more power production. Due to tight regulatory conditions and high barrier to entry I can't see demand getting too far ahead of supply. Any hint of pwer shortages this summer will have these guys back on the front burner IMO. Joe