Cramer on tonight’s MAD MONEY on CNBC was discussing the upcoming huge federal government telecom contract worth $20 Billion out of the federal government. Some place this worth up to $50 Billion total over a 10-year period.
AT&T (T) and Verizon (VZ) would both do well, but the companies are so large that they would hardly tick a couple percent. As far as Sprint (S), Cramer thinks this would help more. Unfortunately he doesn’t think it is a huge mover and it still has a cloud.
On Qwest (Q), Cramer thinks this one has been under a cloud because of the Nacchio trial. But Qwest is the one that would gain the most and it could have a gigantic move if they win a large part of it. Cramer thinsk the comapny has turned around on its own and may even beat numbers without the government contract.
Standard & Poor’s issued its own report on this yesterday. The contract is under the name "Networx" and S&P says that it believes Qwest will likely win a smaller piece of the pie compared to AT&T and Verizon’s share of the contract. S&P thinks that Verizon and AT&T are the most promising contenders.
Jon C. Ogg
March 22, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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