Bear Stearns downgrades high yield wireless, towers

New York, Dec. 6 - Bear Stearns & Co. high yield analyst Sandy Liang downgraded the high-yield wireless telecommunications and towers sectors to underweight.

The move is in response to increased industry risk and significant price appreciation, Liang said in his announcement, noting that most of the sectors have rallied back from an all-time low in July despite the lack of major positive developments in the past quarter.

"The wireless industry is highly competitive and its growth has slowed significantly," Liang said in a news release.

"In the short-term we believe industry risk has increased, because of more intense price competition brought on by the slowdown in customer growth.

"However, in the long-term we believe major opportunities, such as unleveraged free cash-flow growth and potential consolidation, will improve the sectors' outlook. We will revisit our recommendation in early-2003, but for now we recommend that bond investors keep things simple and concentrate their portfolio in core-holdings, such as Nextel Communications and AT&T Wireless bonds," said Liang, who is Bear Stearns' high yield wireless telecommunications and towers analyst.

Liang also recommended Rogers Wireless bonds as a safe harbor investment and Dobson Communications bonds as a long-term investment.

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