Random Stock Market Thoughts

Thursday, March 16, 2006

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Qwest Communications

Q-Now in full disclosure I own this stock, but let me tell you why you shouldn't. Qwest is a horrible company, saddled with debt, in a industry that the competition will eventually beat it out. Right now though they are in the industry trend of a lifetime. Telecom companies have become the new tech of 1999. They go up everyday. In this situation it often pays to own either the best of breed or the worst. And Qwest is one of the worst. Let me tell you why it pays to own the worst though. During bull market times like this it is assumed that the worst companies have the most to gain and that they will somehow turn it around. Whether or not it is likely in this situation is irrelevant, the stock will go higher. The only problem is when this industry turns down those stocks will fall hard and fast. I don't know why I still own this stock and I probably won't sell it for some time to come, I just don't want someone getting involved with a company as crappy as Qwest, despite the fact that it goes up everyday. Look to the best of breed, not Qwest.

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