Sensible concern, but of course Internet stock prices were never sensible. But we'd be amazed if some offers don't come soon, because each of these companies has a network that reaches almost a third of US homes and businesses. DoCoMo is spending for Verio is several times what it would cost to buy either Rhythms or NorthPoint. We led last week a negative Wall Street report on the DLECs, which saw increased competition and higher costs of borrowed funds as great burdens. But we work every day with these companies, and believe the managements are strong enough to overcome the obstacles they face.
Price is cheap as above from last week's issue suggests.
Liz Fetter, Pres of NorthPoint, is out of US West and one of the sharpest in the business. Mike Malaga had the vision and drive to build NorthPoint. BA has some very sharp people as well, less publicly visible. NorthPoint's operations are clean and getting efficient. GTE was doing a good job, but BA's was struggling.