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 : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (1234)	10/9/1998 11:46:00 PM
From: Paul Fine	Respond to of 14638

The whole telecom sector has been down due to fears that in a recessionary enviroment worldwide, the first thing to be cut will be large capital expenditures. That means telecom. Don't say they are right, but that is the stated rational by the "talking heads" on CNBC. Paul

To: Kenneth E. Phillipps who wrote (1234)	10/10/1998 1:45:00 AM
From: WWS	Read Replies (2) \| Respond to of 14638

Kenneth, the enclosed link shows the 100-day graphs of the 4 telecom service companies (ILECs) you mentioned (SBC, AIT, BLS, BEL) alongside of three major telecom hardware suppliers (NT, LU and CSCO). Note that the graphs actually cluster into these same two broad categories, and that in general there has been an inverse valuation relationship between these two sectors over the graphed time period. Thus, while the market has been killing the equipment suppliers it has been rewarding the service providers. The most recent rise in the three hardware stocks over the past two/three days correlates with a corresponding fall in the value of the four ILECs. I've read analysts who've explained that investors have treated the ILECs as "safe havens" (just as they've been rewarding the electrical utilities for the same reason). Perhaps the most recent few days of decline in the telco services sector may coincide with the beginning of a recovery trend for the hardware sector. exchange2000.com