Tuesday, June 07, 2005

Shares droop on Jefferies downgrade

United Online shares sinked almost 15% to $11.05 on June 1st afternoon. This happened after Jeffereies & Co. lowered its rating on the company to hold from buy in the wake of SBC Communication's decision to drop its monthly fee for digital subscriber line access to $14.95. As to how we should respond to this, Jefferies expects that we should embed the Web accelerator feature which currently costs $4.95 a month more than the basic package which costs $9.95. Or we should probably think of lowering the basic price as well.

Due to the same SBC effect Earthlink's shares also dropped by around 7.7%

Still waiting for the decision on the reaction...



Blogger Mega said...

* UOL can tie up with SBC and start offering value added services in DSL..

* SBC can acquire UOL and provide DSL to all of its members..

5:31 AM  

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