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Stocks of both regional Bell holding companies and long-distance telephone companies have not done well in the year 2002. The telecommunications services industry has gotten smaller and its securities have been downgraded. These stocks are not timely for investors in the year 2002.

Stocks of the telecommunications services industry have fallen in early 2002 with pricing pressure and competition. Regulatory authorities have begun to look into possible accounting problems, and lenders have become more stringent. These stocks are for speculative investors only.

Telecommunication services stocks have fallen during the 3rd qtr of 1999 due to Year 2000 concerns, the deficit, the weaker US dollar, along with higher interest rates and other factors. Consolidation and deregulation both are continuing within the industry, and new services and foreign markets are having beneficial effects on the industry, as well. There are several stocks in this industry that will appeal to investors during the 4th qtr of 1999 and for the next three to five years.

The best revenues and profits for telecommunications companies in the US are being produced by Internet and data services, with local telephone companies showing solid results, also. Merger activity remains high in the industry, efforts are being made to tap markets in Asia, Europe, and Latin America, and local Bell networks are being bypassed in cable operations. These stocks are expected to match the market in 1999 and the year 2000, but the prospects for the next three to five years have already been factored in.

Stocks in the telecommunications services industry have performed well in 1999 even though they are not as timely as they were in the 1st qtr of the year, and many are trading at or near their yearly highs. The Internet and data sectors have led to increased interest in these stocks, as have the rising price-earnings multiples. These stocks are timely for the next six to twelve months, but investors with longer time horizons may want to wait for better price opportunities in the future.

Mutual-fund manager Dick Weiss believes that the Strong Opportunity Fund will outperform the Strong Common Stock Fund in 1993. The stocks that Weiss recommends include Conner Peripherals, US Cellular and Kendall International.