The inability of Williams to anticipate the maturation of the market caused the company to invest in products that promised decreased return-on-investment. Further, the reduced profitability undermined the ability of the company to meet its debt burden. The poor performance of Williams Communication Corporation encouraged Standard & Poor’s to lower the company’s corporate credit rating to B, which reflected the poor performance and high risk taken on by the company. Further, the company experienced simultaneous threats to its energy segment. The fall of Enron Corporation decreased consumer confidence in the energy commodities business, causing Williams to lose investors. The stock prices of Williams reflect the adverse impact that unstable energy and telecommunications markets had on the business. Decreasing form its July 2002 rates of $2.95 per share, the stock prices of the company decreased by approximately 90 percent, demonstrating a significant decrease in
The inability of Williams to anticipate the maturation of the market caused the company to invest in products that promised decreased return-on-investment. Further, the reduced profitability undermined the ability of the company to meet its debt burden. The poor performance of Williams Communication Corporation encouraged Standard & Poor’s to lower the company’s corporate credit rating to B, which reflected the poor performance and high risk taken on by the company. Further, the company experienced simultaneous threats to its energy segment. The fall of Enron Corporation decreased consumer confidence in the energy commodities business, causing Williams to lose investors. The stock prices of Williams reflect the adverse impact that unstable energy and telecommunications markets had on the business. Decreasing form its July 2002 rates of $2.95 per share, the stock prices of the company decreased by approximately 90 percent, demonstrating a significant decrease in