It all seems so obvious now about why last week was so crummy. It wasn't our fault. It was their fault. Put simply Boo.com and Equant (ENT - Get Report) and, to a lesser extent, Vodafone (VOD)all stunk up the joint. Big-time.
We didn't think that much about Boo.com here. But this was one of those companies that had huge backing and burned through a cool $130 million with virtually nothing to show from it. Putting aside the obvious mismanagement and the technical difficulties -- wasn't this just a Web retailer-catalogue company in disguise -- Boo was the Amazon (AMZN - Get Report) for Europe. Can you imagine if Amazon failed? Can you imagine what that would do to the investor psychology here?
If that weren't enough, Equant, the French network-communications company, reported truly disgusting earnings last week. Equant was a darling, a kind of
(CSCO - Get Report) meets
(WCOM). But its quarter had severe margin pressure so people bolted and ratings downgrades ensued. This one broke the backs of a whole slew of technology holders in Europe.
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