Well folks, the impact wasn't as bad as some had feared. I tried calling folks at CAWS early this morming and no one was in to take my calls. I spent from 9:00 to now at my surgeon's office and was not around when calls were finally returned. I will keep going after the CFO though to get an answer to the legal, and other, issues (he actually did return my call while I was out do there is hope I will actually get through, Just called his office and I am about the 100th shareholder to call him today. It would be a waste calling the IR's at this point.
Last Friday, as you may remember, in additon to the suit being filed and some no-name brokerage company lowering CAWS from a Buy to Market Perform, their bond rating got lowered too (not one of CAWS' best days). I sent some E-Mail to the 2 guys who did the report lowering their bond rating. I posted one reply on Friday. I got the other reply today and will post it below for whatever it is worth. When reading it keep in mind that these bond guys have access to the CFO, BANX and all the records.
Subject: RE: CAI Wireless
Date: Mon, 25 Nov 1996 08:31:45 -0600
From: weaver@dcrco.com
To: schiller@access.digex.net
Mr Schiller,
The management at CAI will not divulge much information on how the BR
renogotiations are proceeding and if I had any information I would not be
able to give it to you due to our confidentiality agreement. However, I can
give you opinions that are based on public information and my own analysis.
First, I think that eventually the BR will be renegotiated and be
implemented to some degree. There is a risk that it will be never
implemented or that BANX will go some other route like partnering in DBS,
but this would probably be more expensive. I expect that BANX will implement
some of the BR, but not all the potential markets because of delays in
deploying digital and their ultimate desire to support video over their
existing hard-wired cable plant. Therefore, I think that the situation at
CAWS will improve, but will be less than what was originally projected.
As far as how low the stock can go, I think realistically it may be there.
The company does have some valuable assets like the MMDS spectrum licenses
and two digital markets. I think that before CAWS went out of business it
would be acquired by someone.
Sorry about your situation, the company expects to reach a BR conclusion by
the end of the year. Hopefully, the new year will find you with a better
financial position.
Sincerely,
Mike Weaver |
