Thursday, December 09, 2004


It is always fun to make a recommendation one day and then see the stock up strongly the next; especially on a down day. FON is up 1.30 today.

An analyst says a merger of FON and NXTL is possibly in the works. He recommends the purchase of NXTL. His key indicator in regard to the potential merger is whether or not NXTL chooses CDMA for its 3G network. NXTL has studied the alternatives for months on end and has been lobbied hard by QCOM. If FON and NXTL were to merge, VZ would be sandwiched between the largest US cellular firm, Cingular and the new combination. Wow! How quickly the market has moved. When we bought AT&T wireless and NXTL they were very small relative to the giant VZ.

IBM has changed its pension plan. It will now offer all new hires a 401-K. This move eliminates the worry of non-funded liabilities and is seen as a positive for the company. The stock was strongly recommended by S&P.