Qnity Electronics (Q)

The wire line phone companies in general have not performed very well over the last 2/3 years, but they are not terribly economically sensitive, they’re cash flow generating machines and the environment is starting to improve for them. They are also getting price increases on their wholesale business.

Telecom services that is not very economically sensitive. There has been a lot of consolidation in US markets that has allowed the remaining players to price their products a little bit better. This stock is hitting new highs almost every day.

Built the newest generation broad band network in the US at the end of the 90’s. Had a mountain of debt but over the last five years demand for bandwidth has reached the point where they are making a bit of money. Improving margins and revenue growth.

Worst run in terms of customer satisfaction. If they can inprove that they will be very attractive. Things have stablized

Prefers Verizon.

Going forward. Strong mngmnt. At a good price

Offers more value than AT&T and Worldcomm With market slump, can get better deals from suppliers