Jan 8, 2002 - Reverse psychology ,
 TODAY: Equity research columnist Dave Sterman examines the recent
public pronouncements of Nortel (NT) and Lucent (LU), and why
some analysts believe that management of both companies might be
engaged in some subtle mind games.

Also below, Columnist John Filar Atwood explains why the focus in
the cable TV industry will be on consolidation and EBIDTA growth.

Finally, readers might note that Qualcomm (Q) figures prominently
in our list of ten most recommended telecom stocks, and can
follow up by reading a strong recommendation from Morgan Stanley
by registering for the firm's free research trial--a benefit
available exclusively to Multex Investor members like you.

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Below
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Investment ideas
Broker reports
Top 10
Free and sponsored reports

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Investment ideas
-----------------------------------------

1. Looking ahead: Analysts predict solid 2002 for cable TV stocks
Consolidation and EBITDA growth will be the year's major themes

by John Filar Atwood, equity research columnist

Investors relying on cable television stocks as a defensive
investment were disappointed in 2001, as the group fell by about
20 percent, compared with the a drop of "just" 13 percent for the
S&P 500. But investors who now abandon the industry may find
themselves even more disappointed in 2002.

Analysts are projecting a strong year for cable companies,
predicting revenue growth of 13 percent and EBITDA growth of 14
percent. They also believe most of the stocks are more fairly
valued heading into 2002 than they were at the outset of last
year, when a late-2000 runup left them overpriced.

Adding to analysts' enthusiasm is the recent completion of
Comcast's (CMCSK) purchase of AT&T's (T) broadband unit. The
merger underscores the value of broadband and its ability to offer
voice, data and video over the same pipe.

Click here to read more:
http://www.thetelecommanalyst.com/article.asp?docid=5682&nd=0108


2. Dept. of silver linings: Dampening the mood
Why Nortel (NT) and Lucent (LU) may be playing the reverse- psychology game

By Dave Sterman, equity research columnist

Lucent Technologies (LU) and Nortel Networks (NT) delivered their
twisted versions of holiday cheer in recent weeks, telling
analysts that sales are slowing yet further, and admitting that
forward-looking estimates will have to come down--yet again.

But with their shares languishing in single-digits despite a
broad year-end Nasdaq rally, analysts have been softening their
positions, even to the point of seeing silver linings in these
recent whipping-boy stocks.

Indeed, some analysts believe that the beleaguered telecom
equipment vendors may be deliberately dampening investor
enthusiasm and even underreporting or delaying booking some
revenues in order to boost March 2002-quarter results (and make
for easier December 2002 comparisons to boot).

Click here to read more:
http://www.thetelecommanalyst.com/article.asp?docid=5619&nd=0108


3. International wires: Counter-consensus
These four telecom services companies bear analysts' lowest ratings, but is that really bad news?

By Ben Mattlin, equity research columnist

Last week, we looked at underrated international telco equipment
companies. Today, we're featuring four international telecom
services companies traded in the U.S. that tote an average
analyst rating of 4 ("underperform") or worse.

Why would an investor want to consider a poorly rated stock?
Let's put it this way: A highly rated stock means a lot of people
already like it. If you like it too, you're going with the flow,
following the pack. Me-too investing may do all right, but it's
better to get there first, to blaze the trail. True value is
added only if the investment opinion is different, counter-
consensus, and of course, on the money. In other words, no guts,
no glory.

Click here to read more:
http://www.thetelecommanalyst.com/article.asp?docid=5577&nd=0108


4. Burden of proof: Portly telcos
Telecom stocks trying to slalom through tough conditions while carrying a few extra pounds of debt

By Dave Sterman, equity research columnist

Telecom bankruptcies have been making headlines for most of the
last year. Struggling upstarts that borrowed too much money had
to fold up shop as the cash ran out and creditors came knocking.
But debt problems of another sort are cropping up for much larger
telecom firms. These companies are not candidates for bankruptcy,
but staggering debt loads may hinder their operational
flexibility and could even cause them to radically scale back
their businesses. For equity investors, the situation certainly
bears watching.

Click here to read more:
http://www.thetelecommanalyst.com/article.asp?docid=5628&nd=0108


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Broker reports
-----------------------------------------

1. WHAT'S HOT?: The Cisco shift

This report examines IP infrastructure spending, the next-gen
Internet and network architecture layers, Cisco's strategic
alliances and mobile business customer targets, and advanced e-
services and content applications. (2-page report for purchase -
$5)
http://www.thetelecommanalyst.com/download.asp?docid=5676705&nd=0108


2. EDITOR'S PICK: Daily fiber

In the report, a review of the Comcast (CMCSK) deal and possible
beneficiaries, the latest on JDS Uniphase's (JDSU) business, the
disappointment at Terayon (TERN), a warning from Juniper (JNPR),
and news from Level 3 (LVLT). (6-page report for purchase - $25)
http://www.thetelecommanalyst.com/download.asp?docid=25884720&nd=0108


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Free and sponsored reports
-----------------------------------------

1. FREE RESEARCH REPORT:

WR Hambrecht comments on the retailer's numbers for Sprint PCS (PCS)
and Verizon (VZ), maintaining its "buy" recommendation for one.
The report also contains stock and valuation data, as well as a
historical and projected income statement. This 4-page report is
free to Multex Investor members for the next 72 hours.
http://www.thetelecommanalyst.com/download.asp?docid=25936413&nd=0108


2. FREE SPONSOR REPORT:

Morgan Stanley recommends QCOM to investors with a long-term
investment horizon and a high tolerance for risk. Read why the
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http://www.thetelecommanalyst.com/download.asp?docid=4708130&sid=8&nd=0108


Top 10
-----------------------------------------

Top 10: Most recommended telecommunications stocks:
This week's selection includes Qualcomm (Q), Sprint PCS (PCS),
and American Tower (AMT)


Presenting the latest valuation and analyst recommendation data
from Multex's proprietary stock-screening tool applied to the
universe of The Telecomm Analyst stocks. See tables sorting the
top 10 stocks according to the highest average recommendation.
http://www.thetelecommanalyst.com/article.asp?docid=1502&nd=0108


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