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It's telco again! XO Communications (XOXO:Nasdaq - news - boards) seemingly is coming unglued. Winstar (WCII:Nasdaq - news - boards) is just a point-and-a-half above not being able to be margined. Same with 360 Networks (TSIX:Nasdaq - news - boards). And how about that Teligent (TGNT:Nasdaq - news - boards) disappearing act?

People are abuzz about how we're about to get several telco crises within the next few weeks. That's where the real stress is because that's who owes the money.

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All day today I heard whispers of a major private telco default that could occur within the next 48 hours that would cause another downleg to the equipment makers.

That, plus the Nextel (NXTL:Nasdaq - news - boards) shortfall, tell me that you still can't speculate on these telecom equipment stocks. To me, Juniper (JNPR:Nasdaq - news - boards) and Ciena (CIEN:Nasdaq - news - boards) would seem most vulnerable to the next set of defaults.

Just a heads up.

Random musings: Please take off some EMC (EMC:NYSE - news - boards) here as the rumor of IBM's (IBM:NYSE - news - boards) buying them is absurd. I want to do some selling in that name and take the loss.