U.S. woes dragging global telecom stocks down
Cable and telecom stocks, like almost all stocks in all exchanges across the globe, are being damaged by fears that the U.S. is dragging the entire world into a recession.
Pick a time span – year, month, week, day – and most communication stock prices are down. The stocks of equipment suppliers are down too, of course. Technology, in general, was down, as were energy stocks. Even the health care segment, something of a safe haven recently, was dinged.
This is only the beginning of the Q3 reporting cycle, and the very few companies that have reported so far (Level 3 , Juniper , Concurrent ) claim to have done reasonably well despite the economy and express cautious optimism about Q4 and 2009.
Investors are demonstrating that they’re less sanguine about the near future, however, and companies outside North America are especially taking it on the chin today.
Time Warner Cable was down a percentage point at mid-day; Rogers, Shaw and Mediacom off 3; Comcast off 4; Knology down 6; and Virgin Media off 11 percent. Nearly everyone is trading within a dollar of their 52-week lows; Cogeco and SureWest are exceptions to that, though they’re still down for the year.
On the telecom side, AT&T and Embarq were at mid-day down 2 percent from yesterday; France Telecom off 5; Sprint Nextel, Portugal Telecom and BT were down around 7; and KT in Japan was down over 12 percent. Here, too, nearly everyone is between a dollar and $3 from their respective year lows.
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