Rodent Regatta

THE SUMMER OF ’02
Telecom changes colors

[May require a subscription] – Last Friday I spoke of the telecom industry as one with no conscience. Today the Wall Street Journal runs this. Is it any wonder that this industry trades at roughly 90% off its market highs? Is it any wonder there are countless scandals, fines and bankruptcies?
Today, Worldcom’s Sidgmore said avoiding a bankruptcy filing ”is looking much more difficult.”
With demand for bandwidth continuing to grow, many companies attempting to sell assets or parts of their operating businesses, could Level 3 be at precisely the right place at the right time to take advantage of a ”perfect storm?” Someone must think so as the stock has traded up from an opening of $2.89 on Monday to a close of $5.59 today; and this in the face of a general market decline this week. We might be witnessing the start of telecom industry transformation of historic proportions!