"progresses...by the way, I'm grateful to get the steal of the telecom year....I missed Q at $1....won't miss CWP..."
Or maybe these people are aright.
"Dresdner downgraded the stock to "sell" from "hold" and cut its price target to 52 pence. It was joined by many others, including Morgan Stanley, Schroder Salomon Smith Barney (SSSB), and C&W's joint house broker ABN Amro.
ABN cut its rating on the telecoms firm to "hold" from "buy" because of a lack of earnings visibility at Global, which C&W has vowed will start earning cash from by March 2004.
"No competitor that we're aware of currently generates free cash flow from this kind of activity," analyst Simon Carrington said, also noting that margins at C&W's cash-generating Regional arm were also under pressure in the first half.
Morgan Stanley more than halved its price target for C&W on concerns it might yet be forced to review options for Global again, even after the restructuring. Morgan's price target dropped to 68 pence a share from 150p.
"Although we believe C&W's restructuring review provides upside potential if savings targets are reached, given the weak track record we think it prudent to assume a more difficult scenario," analyst Nick Lyall said.
"If the company fails to achieve its targets, then the closure of Global would sap the remaining cash, in our view."
I talked to my broker, Edward Jones, yesterday. They are maintaining a BUY rating.
How can it not be a BUY at these levels. Anyone that lowered ratings today suffers from poor hindsight. They should have lowered ratings 4 months ago. Now its too late. And at these levels it has to be a BUY purely an valuation.