For those that missed CNBC, Bloomberg slant on DOCI
DecisionOne Shares Almost Triple Although They Will Soon Be Worthless
By David Evans
Frazer, Pennsylvania, Dec. 10 (Bloomberg) -- DecisionOne
Corp.'s shares soared for most of today, as investors, seeking
stocks associated with the Linux computer operating system, bought
shares of the largest provider of computer-maintenance services in
North America, oblivious to the fact that they will soon be
worthless.
The shares tripled in early trading, moving as high as 6
before closing down 7/16 to 1 15/32 in trading of 2.8 million
shares. That still values the company's 12.6 million shares at
more than $18 million.
The rise came after investors posted positive comments on the
stock on Internet stock bulletin boards, noting that the company
provides technical support for Linux operating systems.
The company agreed in August to turn over 95 percent of the
company to holders of $523 million of its debt. Its other
creditors will get the rest of new stock it will issue after it
files a prepackaged bankruptcy early next year, said spokesman
Mike Geczi.
``There will be nothing left for equity shareholders,' he
said.
On August 2, DecisionOne failed to make the required interest
payments on $7.3 million of 14 percent senior debentures due in
2006 and $150 million of 9 3/4 percent senior notes due in 2007.
DecisionOne's liabilities exceeded its assets by $455.9
million as of June 30. That included debt of $786.8 million as of
June 30.
It lost $105 million, or $8.40 a share in the fiscal year
ended June 30, on sales of $725.9 million.
About 87 percent of the company's stock is owned by DLJ
Merchant Banking Partners II LP, an affiliate of Donaldson, Lufkin
& Jenrette Inc.
"The rise came after investors posted positive comments on the
stock on Internet stock bulletin boards."
We need a little more facts and a little less hype on the thread. Sanjiy's post about DOCI's restructuring was the first clue, but no one followed it up. Jason apparently took profits at $4. Jason and Wes warned everyone when the truth was out. DOCI holders can thank them for not letting readers get stuck holding over the weekend.
Jack
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