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 : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: augieboo who wrote (19341)	12/10/2002 4:04:28 PM
From: Softechie	Respond to of 30712

Penny-Stock Rally Can't Mask Some Firms' Hideous Condition By James J. Cramer 12/10/2002 11:01 Sometimes these crashes play out in slow motion. The disintegration of Cable & Wireless CWP , for example, has been a virtual Works Progress Administration for short-sellers. This company, which is perhaps the worst run of the whole slew of telcos out there, with the exception of the restructured Marconi , will soon be the next casualty of the business. I point it out because it would seem that no matter how much "heads-up" there is in the market -- and I have been writing that CWP is a classic short for the better part of a year now -- there is always some sort of shock to the system when a company collapses. Witness this absurd dance of death around UAL UAL , where people seemed truly surprised that this company, which had one of the worst balance sheets I have ever seen, can't make it. Similarly, when CWP goes belly-up, I hope we don't hear squeals of surprise. There are tons, just tons, of marginal companies out there that are teetering on bankruptcy now, something that was obscured by the rally we had in the penny-type stocks these last few weeks. Now is the time to recognize and "build in" some disappointment risk to your portfolio. I know, as someone who owns some Nortel NT , JDS Uniphase JDSU and Corning GLW , I have to brace myself for this inevitable CWP fiasco. Have you? Get ready for it; it's coming.