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 : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (123576)	8/27/2002 10:53:05 AM
From: Art Bechhoefer	Respond to of 152472

MM--I agree that the deal between Buffett and LVLT has terms not available to ordinary investors. He gets a special issue of convertibles that pay 9 percent, coupled with a conversion option already in force. But as you note, he also buys into a company heavily in debt, and forced to charge high prices for services in order to service its debt and make a reasonable profit. There is only one major telecom service provider that I know of that has no debt, yet all the service providers now seem to be having one problem in common: They can't find enough customers at any price, so they're all operating well below capacity. You'd think that a company without debt in this sector would do well, but that isn't the case. FCC Chairman Powell thinks the only answer is consolidation, which of course means writing off excess capacity by a company with sufficient resources to do that and still stay solvent. He leans toward the regional Bells as saviors of the whole telecom industry. He also leans toward the larger companies involved in wireless, regardless of the wireless technology they use. Technology, in other words, is a mere detail with far less significance than financial muscle. Art