Apple Looks Strong Here

Good back to school sales and Christmas is just around the corner. The chart shows a long term cup and handle formation from May through the end of August, indicating higher stock prices from here.

The FED ...

The FED will soon realize that their relentless series of rate hikes have slammed on the breakes of our economy. Spending is slowing and just about every 10th house in most neighborhood seem to be on the market for sale!

Economy Grows at a 2.9 Percent Pace

Core inflation at the producer level fell unexpectedly during July

Go Figure? FED Action Trips Us Up Again

The market has rallied on good earnings reports and the likelihood that the FED would stop raising rates. Well, the FED halts a series of 2 years of ever increasing rate hikes and the market sells off on the news! Now, Wall Street will tell us that because the FED has paused on the rate hikes, this is not good since the economy may be slowing! That is...rising inflation in a slowing economy.....stagflation they will call it! What next??

Trinity Industries Could Run From Here

Looking at the chart, we feel that Trinity Industries - TRN cound run through $40 from these levels. It has been on a Buy signal since $35 and looks solid as it continues to move higher.

TRN Chart

Telecoms Have Made A Good Run

Q, TWTC, And BWNG are positioning themselves to benefit from the upcoming high demands of media services with home and enterprise customers in the future. We are seeing a slight pullback after digesting the recent run ups, but expect that higher stock prices will follow quarter after quarter as profits continue to improve.

AT&T Leads the Telecom Stocks Higher

Finally, the telecom pendulum has started swinging up as investors look for defensive characteristics by investing in the telecom industry, so expect positioning in this industry in the coming weeks.

Stocks Soar as Value Buyers Step In

Today Was Options Expiration Day

Therefore, many good stocks were pushed down to make several options expire worthless today or for less money after the good spike we had in the market the other day. Here's hoping that we have a run in the market next week. We need it!

Bernanke: Interest Rate Hikes May Be Over

Ben Bernanke Signals That Two-Year Campaign of Raising Interest Rates May Be Coming to an End. What does this teach us. Well, when all looks lost the markets usually turn around. Shorts will be covering on this news and drive many of our stocks back up to higher levels.

Dow Shoots Up 100 Points After Bernanke Comments

Seems that Uncle Ben feels that inflation may be under control now. This is a good sign for the bulls.

Qwest, Time Warner Telecom, and Broadwing Fidelity Filings

What Does Fidelity Know?

Qwest Filing

Time Warner Telecom Filing

Broadwing Filing

Stock Charts

BWNG Stock Chart

Broadwing Update Per Company Call Today

- Fidelity Mid Cap Fund files 12.6% holding today on EDGAR
- Broadwing has proforma 1st qtr cash of $348.2 million in the bank.
- They are looking at a variety of acquisitions to add customers
- There are both internal and external candidates for CEO under review
- Company was $2.3 M adjusted EBITDA positive last quarter
- Company has evolved from an equipment company (Corvas) to a service provider
- They bought an asset from Cinncinati Bell that costed $5B to build for approx. $71 M
- They purchased Focal to broaden their services to small and medium customers
- In 2004 the company raised money with a Toxic convertible that was not a good deal and should not be confused with the recent good convertible that actually sold at a premium to the market price with a conversion price of $16.60 around May.
- The new convertible has a 20 yr life and interest is only paid in cash and Not stock as many short sellers or panic sellers may believe (this is where some confusion arises with panic sellers who remember the deal they did in 2004)
- Because of the Focal acquisition they were able to sign a deal with AOL recently
- Also, because of their partnerships with AOL, HTX and GLBC they will have the ability to sell their services to others more easily and more credibly
- Broadwing is following through as planned with their strategic plan to achieve higher margins
- The goal now is to drive more traffic to the network and adding customer density to achieve higher margins

Telecom and AG Stocks Poised To Lead The Markets

Fidelity Mid Cap Fund Positions itself with several telecom stocks that are doing very well ytd. Qwest, Time Warner Telecom, Broadwing and others. POT and others in this industry (MOS) are running as well!

Click here

The Market Needs A Catalyst To Move Higher

Broadwing Update

Here is what the street knows. The recent partnerships with AOL, Hutchison (HTX), and Global Crossing and the follow-on business from those relationships will be the catalyst that takes us back up to the mid to high teens for BWNG stock. The convert price on the recent fundraising debentures is $16.60. Also, Fidelity (FMR Corp), upped their stake to over 11% because in looking at the big picture, they see the high demand for greater bandwidth media services that Broadwing brings to the table on a global standpoint through its optical network and solid partnerships.

Analysts and fund managers know that BWNG is significantly undervalued, therefore we would be aggressive buyers at these levels.

High Bandwidth Is The Future For Triple Play Services

Service providers are looking to offer triple-play services, therefore it is imperative that they have a network that can handle the bandwidth required. Broadwing (Nasdaq - BWNG) has the #1 optical network that is suitable to carry out the high demands for future media services!

Read The Latest Info
More Interesting Reading

Also...FLORHAM PARK, N.J., June 6 /PRNewswire-FirstCall/ -- Global Crossing (Nasdaq: GLBC - News) announced today that it has more than quadrupled the capacity of its global IP network backbone to support the growing customer demand for bandwidth-intensive applications and converged IP services. It has implemented a core network architecture that has more than quadrupled its PoP-to-PoP core capacity capability to multiple 10-Gbps speeds, while providing a Terabit-capable hub that enables an on-demand migration path for speeds up to OC-768.

Several Telecom Deals In The Works

TOP NEWS:

Telcordia executive appointed to presidential advisory group
Jul 6, 2006 2:52 PM

China Telecom becomes Cisco’s new best friend
Jul 6, 2006 1:33 PM

Nokia to promote Wi-Fi portfolio on NYC parks
Jul 6, 2006 1:24 PM

EarthLink, Time Warner Cable extend access deal
Jul 6, 2006 1:06 PM

Motorola buys its way into Clearwire's network
Jul 6, 2006 12:11 PM

Intelsat, PanAmSat merger creates global leader
Jul 5, 2006 7:05 AM

News Links Found Here

Several Telecom Deals In The Works: Telcordia, Cisco, Motorola, Clearwire, China Telecom, Nokia

TOP NEWS:

Telcordia executive appointed to presidential advisory group
Jul 6, 2006 2:52 PM

China Telecom becomes Cisco’s new best friend
Jul 6, 2006 1:33 PM

Nokia to promote Wi-Fi portfolio on NYC parks
Jul 6, 2006 1:24 PM

EarthLink, Time Warner Cable extend access deal
Jul 6, 2006 1:06 PM

Motorola buys its way into Clearwire's network
Jul 6, 2006 12:11 PM

News Links Found Here