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Strategies & Market Trends : Gorilla and King Portfolio Candidates
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To: Apollo who wrote (12865)12/16/1999 8:12:00 AM
From: 100cfm  Read Replies (2) of 54805
 
<<, but I would say that much of their debt is related to the cost of erecting the expensive data centers; I would think that at some point, the cost of starting up slows down, and the data centers will have been paid off>>

Apollo, thats the part that realy scares me. data center equipment costs and construction costs are carried as two seperate line items. it seems that they need to add almost a dollar of data center equipment for each additional dollar of revenue ontop of the 40mm of construction in progress costs they are carrying quarter to quarter.
one could argue that at some point they will have enough buildings to handle the expansion of data center equipment for a certain time frame until they need to build additional buildings. I assume thats where the projected 7 cents in earnings comes from, the reduction in construction expenses.

Lets say that in 2002 their construction expense is cut in half. that would throw 80mm to the bottom line. aprox. 50 cents per share. and lets say they double the 7 cents from the yr before, thats a total of 65 cents, or 104mm. still a very anemic sum for going 3 yrs out and a company with a 15b bil cap in todays dollars and a debt load probably exceeding a billion dollars by then.

yes, i would most certainly cast my vote with lindy on this
one."it's got to be making a profit"

100
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