TGL WHAAAAAAAT! Alerts, thoughts, discussion. Message Board

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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion.

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To: bigbuk who wrote (106949)	6/25/2002 8:28:39 PM
From: Rocket Red	Read Replies (1) of 150070

SAN FRANCISCO (CBS.MW) -- WorldCom faced bankruptcy Tuesday night after announcing one of the largest corporate frauds in U.S. history and firing its chief financial officer. Shares fell 70 percent after hours. WorldCom (WCOM: news, chart, profile) said it will restate its financial results for all of 2001 and the first quarter of 2002 to take almost $3.8 billion in cash flow off its books, wiping out all profit during those times. The company also dismissed CFO Scott Sullivan while David Myers, senior vice president and controller, was allowed to resign. "Our senior management team is shocked by these discoveries," said CEO John Sidgmore in a press release. "I want to assure our customers and employees that the company remains viable and committed to a long-term future." The company boosted its cash flow and profits over that five-quarter time period by wrongly booking billions of dollars in line cost expenses as capital expenditures. These bookings include $3.06 billion in 2001 and $797 million in the first quarter of 2002. In an environment already undermined by accounting scandals and earnings woes, the news could hit the broader markets hard on Wednesday. WorldCom was by far the most active issue on the Island ECN after the close. See the After Hours report. The tech-laden Nasdaq-100 After Hours Indicator reacted with a 1 percent decline. Earlier, stocks swooned to a harsh finish with the Nasdaq closing down 36 at 1,424 while the Dow ending the day down 155 at 9,127. See Market Snapshot. What's your take on WorldCom's dire situation? Share your thoughts in CBS MarketWatch.com's WCOM Discussion

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