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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (12409)	6/28/2002 6:35:41 PM
From: techanalyst1	Read Replies (1) \| Respond to of 57684

Why should that come as a surprise? They have three customers (no, I think they got a new one recently): Cable and Wireless who hasn't paid a dime yet. Dynegy who probably has been cutting costs and probably is delaying their buildout of europe. Qwest who renegotiated their contract so they could get out of their contract with for no reason whatsoever. Besides that one new contract they got (I don't remember if they disclosed the terms) they have failed to get a new customer in nearly 2 years. They cut staff this week. Any time a company is cutting staff it's a sign that things are NOT getting better. MAYBE they aren't getting worse and they can weather a storm by cutting costs, but in this sector capex keeps going lower and lower and lower. Borrowing costs are going up and companies are trying to eek out every penny they can. Why else would the company be trading for less than the cash on hand if people didn't expect that they were in this kind of shape? They might have the next best thing to sliced bread, but if they can't sell it, they have nothing but hope, cash and expenses. They might be a buyout candidate, but who wants to buy someone out when they can't sell what they have either? If they can manage their cash and get a contract, maybe the stock is a bargain here. TA