Communication Stocks Rebound After Slight Dip Post-Attacks
Communications stocks bounced back with the broader market after concerns related to the Sept. 11 terrorist attacks briefly sent them lower.
The Dow Jones industrial average rose 4.8 percent between Sept. 17 and Oct. 15, while the S&P 500 gained 4.9 percent. Many communications-related stocks did better, as the PHONE+ stock index rose 6.3 percent over the same period, although the Service Provider index advanced just 2.7 percent.
Despite a rash of profit-related warnings and general nervousness stemming from the attacks on New York City and Washington, D.C., investors were cautiously optimistic about some communications companies’ abilities to shake off the effect of the assaults.
Some observers suggested the communications companies could benefit from the rebuilding efforts in New York. At the same time, many analysts cut earnings estimates in the face of a generally weak economy.
Among non-penny stocks, cable and telecom services provider RCN (www.rcn.com) advanced 57.4 percent from mid-September to mid-October. RCN recently bought back $161 million worth of its debt.
WorldCom Inc. (www.worldcom.com) rose 15.2 percent. At least one analyst has tabbed the company as a takeover target.
AT&T Corp. (www.att.com) picked up 9.6 percent. The company recently announced plans to end its Concert (www.concert.com) joint venture with British Telecom (www.bt.com), although AT&T wants to expand its own global network.
|PHONE + SERVICE
Top 10 Percentage Gainers
|US Wats Inc.||0.26||0.68||0.42||161.54|
|VocalTec Communications Ltd.||0.95||2.20||1.25||131.58|
|Metromedia Fiber Network Inc.||0.40||0.62||0.22||55.00|
|Tel – Save.com||0.33||0.45||0.12||36.36|
|Top 10 Percentage Losers|
|Electric Lightwave Inc.||0.73||0.35||-0.38||-52.05|
|Microcell Telecommunications Inc.||2.40||1.17||-1.23||-51.24|
|Adelphia Business Solution Inc.||1.60||0.96||-0.64||-40.00|
|PNI Technologies Inc.||0.02||0.01||-0.01||-40.00|
|Aquis Communications Group Inc.||0.05||0.03||-0.02||-38.78|
|Arch Communications Group Inc.||0.03||0.02||-0.01||-23.33|
|Globstar Telecom Ltd.||0.34||0.27||-0.07||-20.59|
|Primus Telecommunications Group Inc.||0.82||0.71||-0.11||-13.41|
|PHONE+ Stock Index||1753.34||1863.57||110.22||6.29|
|Service Provider Index||1630.90||1675.34||44.45||2.73|
|Dow Jones Industrial Average||8921.18||9347.62||426.44||4.78|
|S&P 500 Stock Index||1038.77||1089.98||51.21||4.93|
|NASDAQ Composite Index||1579.61||1696.31||116.70||7.39|
|NYSE Composite Index||541.99||561.82||19.83||3.66|
|Source: CNET Investor (investor.cnet.com) Boulder, Colorado. This information is based on sources believed to be reliable, and while extensive efforts are made to ensure its accuracy, no guarantees can be made. CNET Investor assumes no liability for any inaccuracies.|