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No. of Recommendations: 8
As hard as it is to do, and today is harder than most, focusing on WCG's long term potential is the only way I can avoid getting paniced into selling my position; a substantial position that I have aquired by buying on days like this. And before the day is over, I may well buy some more. Of course, I must also acknowledge the very real risk that WCG could ultimately fail as a company. What goes down doesn't always go back up. I've had some of those.

Unfortunately, as more and more pressure is put on the whole telecom sector, and more telecom companies go CHll or CH7, and more telecom companies get their credit ratings downgraded and still more companies of every description are unable to finance their operations and growth, because of a credit squeeze, reality gets distorted and we enter the land of self fulfilling prophecy. Sometimes, what goes down stays down and sometimes good companies find themselves in environments that they can't survive. I hope that doesn't become the case with WCG.

Personally, I no longer understand what is going on with the Williams Companies stock prices, except that they are going down a lot and only going back up a little. I want to believe that most of the decrease in share prices for both WCG and WMB are rumor and panic driven and fed by thrill seeking, ratings hungry media outlets that feature the same talking head stock analysists who were hyping panic bought and highly overpriced tech stocks in the not too distant past.

The stock market in recent years has doned the trappings of entertainment. We've entered the era of recreational investing; trading stocks as a hobby. Which stocks went up or down and the Dow Average has become coctail party conversation. The stock market entertainment factor often overshadows the fact that the stock markets are still simply markets where buyers and sellers come together and by their actions determine the market prices of shares of stock in thousands of companies. Not the real price or the real value but the market value of any given stock on any given day at any given moment. The reality of a company's ligitimate worth and earnings potential are what in the end determine the ligitimate stock price and the market price fluctuates above and below that real price based on the decisions and actions of the buyers and sellers.

This morning, the actions of sellers (not necessarly share holders by the way) of a tiny portion of all the WCG stock, about 3% of total shares, drove the price down about 30%. To me it appears that their actions were strictly emotional and not based in any real thought process except that the stock is very volotile and a profitable day trade is possible. I've done it myself.

Is 1.00 a ligitimate share price for WCG based on the real assets, liabilities, operations and earnings potential of WCG? I just don't know any more. I must say that in the wake of Enron and Global Crossing, I'm a little groggy. If, in the next few years, WCG gets back to prices near its most recent 52 week high, I'll make a whole lot of money as will most of the current stock holders. The other side of the coin could be a big zero.

Time will tell. Good luck.


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