Topic_6_E1 - Topic 6 Exercise 1 Industry Analysis...

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Topic 6 Exercise 1 Industry Analysis Telecommunications Industry Fundamental stock analysis involves assessment of the economy and industry as a first step. Without the analysis of the environment in which the companies operate, the analyst will not be able to assess the value. BusinessWeek’s special report entitled, “It’s ‘Merge, Buy, or Die’ in Telecom,” describes some of the issues and complexities involved in the telecommunications industry. In April of 2002, the value of the telecommunications indexes was off 25% in a month. Poor performance, unexpected losses and departures of CEOs dominated the news. Quest reported earnings with much larger losses that expected. Bernard Ebbers of WorldCom was forced to resign. The pressure-cooker atmosphere of low profit margins and high debt loads are reshaping the entire industry. After reading the special report answer the following questions: 1. All four Baby Bells announced earnings shortfalls and Qwest is facing a liquidity crisis
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Topic_6_E1 - Topic 6 Exercise 1 Industry Analysis...

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