Thursday, July 27, 2006 3:00:14 PM
Everything on my list is down 3% to 8%. The rising tide is receding again.
GA warned of mergers last May:
>>Recent telco mergers, such as Verizon-MCI and SBC-AT&T, will probably act as a trigger for further restructuring. Pressure has moved down to the equipment OEMs, and the Lucent-Alcatel merger is likely to stimulate similar consolidation. The result - fewer but more powerful downstream customers - will further weaken the hand of the leading optical-component players if they do not respond. Put simply, this industry is not grabbing the opportunity to consolidate ahead of its customers and move decisively to recreate pricing advantage and economy of scale.<<
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