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Washington's impact is growing on corporate America -- and I'm not just talk about the financials Telecom stocks also feeling the brunt of regulation.
Charlie Smith is a principal and chief investment officer at fort Pitt capital group.
Else manages the fort Pitt capital total return fund which is heavily weighted in the Telecom.
And cable area and I wanna talk about Telecom just the second of Washington's effect on -- -- by the way Disney earnings may come -- we want you to talk about that if they do.
Because of course they play into the whole -- game but we always look here for things that are overlooked but everybody else and you pointed out one of those things capital spending.
Companies are spending a lot of money on trucks on on computer equipment on heavy stuff machinery.
That last for a long time what does that indicate to you.
Well we've seen a a big -- in capex and in Tony eleven because of the bonus depreciation in that Washington granted.
In in the year and I think get where we have to decide whether this big push in capex.
Is something that was pulled forward 12011 and it's gonna wane here in 2012 and that's sort of a concern we have about the economy 2012 with.
If so much of the capex was sort of artificially pulled forward 12011.
And we might see -- fall off here in 2012 so that's something we're watching very close.
OK and also seems to mean that something is conference -- -- good -- they -- westside story -- Telecom magnolia love Telecom I do too.
I love it I love it to death however you look at what the regulators doing -- look what happened AT&T.
There's a lesson there where they had to pay four billion dollar filthy because the regulators essentially didn't let that T-Mobile thing go through -- Isn't that a big warning to telecoms right now.
Well I think there is some concern that the FCC and justice is going to be a lot more careful about.
Letting the large you know the most successful Telecom providers ATT Verizon and Comcast continue to be successful.
Our -- statements and on that most recent AT&T conference call basically came out and said.
We can't have Washington picking winners and losers if the marketplace decides and AT&T has a product.
That they they are gonna be happy with and wanna -- AT&T needs to capacity to be able to provide it in their efforts to get extra spectrum.
Via the T-Mobile deal have obviously been thwarted so they're gonna have to find another way around Charlie get -- I I.
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