Wheat and Chaff in the Telecom/Fiber Sectors

Discussion in 'Trading' started by chasinfla, Sep 28, 2002.

  1. Soliciting opinions on which companies in these areas are likely to be survivors, aquisition, dead meat, etc.

  2. I read somewhere that there is so much dark-fiber laying around, that anything related to Fiber-Optics will have an extremely tough time surviving.

    Worldcom started all this BS when Sidgmore was touting how internet traffic was doubling every 100 days. The government picked up on this and even published this fact as Worldcom as it's sole source of information.

    Unfortunately, they were dead wrong and many companies were laying down fiber-optics like it was going out of style.

    Today we have trunks of fiber-optic capacity sitting unused and pushing bandwidth prices way down due to over-supply.

    We'll see a lot more bankruptcies and liquidations in the next few years, especially as companies like Worldcom emerge from Chapter 11 with no-debt.

    Verizon isn't too far away from the chopping plate -- it is only a matter of time for them and their massive debt-load.
  3. oh man i hope not, i think jimmy cramer would burst a vein if that happened..