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I think there will be a better buying opportunity in telecoms going forward.
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And it is seeing a lot of consolidation: only this week two huge utilities, FPL of Florida and Entergy of Louisiana, announced a $27 billion merger to form America's biggest electricity company.The analogy with telecoms goes further.
Because Mr. Grubman tried to take much of the glory for the telecom boom -- he was featured on magazine covers and sat alongside telecom executives as they announced big acquisitions -- he became the perfect fall guy when telecom went bust.
The interest groups that eagerly sought the Telecommunications Act of 1996 might have remembered the saying, "Be careful what you wish for". In place of the old regulatory regime, which had ensured that no one in telecom went broke, investors and firms in the industry celebrated the arrival of a system in which many of them would go broke.
"When the cost of telecom goes to nothing a lot of interesting things happen and new businesses can be built," says Whitman.
In pharmaceuticals, Almanac Investor recommends Pharmaceutical HOLDRS (amex: PPH) and Dow Jones Healthcare iShares (amex: IYH); in consumer issues, buy Consumer SPDRs (amex: XLY) or iShares Dow Jones Consumer Cyclical (amex: IYC) or Non-Cyclical (amex: IYK); in telecom, go for Telecom HOLDRS (amex: TTH) or Telecom iShares (amex: IYZ).
"I never thought telecom was going to go away," she said.
"All of technology had been doing well for October, November and half of December, but those companies that have exposure to telecom are going to have difficulties in 2002.
How else is a telecom company going to profit?
Last week Global Crossing, a telecoms firm, went bust amid claims of dubious accounts.
"I remain singularly unpersuaded that the media business and the telecoms business go together," Mr. Angus said.
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