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Stocks T / TyCom, Ltd.


Subject:  TCM is a long term buy Date:  2/5/2001  3:48 AM
Author:  mikejw Number:  35 of 136

Don't expect too much "action" out of TCM in the near term. They were sold off with the rest of the telecomm service providers because of issues in the sector with high debt and revenue problems. But when you consider TCM's main competitors(LVLT, GX, TSIX, WCOM, and CWP), TCM has cost pricing advantage and a focused strategy on what they are going to do. There is definitely a glut in land based fiber which is forcing severe price competitition. But in submarine cables there is price competition but TCM has an advantage in that it can price more competitively because it doesn't have to pay contractor markup to install a submarine cable. It has about 1 billion dollars in cash and a revolving credit facility through its parent company TYC. It doesn't plan to sell anymore stock to finance its buildout but rather use its revenue base from its third party customers, and revenues from its current cable network. I think the next 2 years will show its superior technological and business edge as its competitors either go bankrupt or merge with one another. LONG TCM.
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