Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Stockdoctor who wrote (51324)	2/3/2000 8:56:00 PM
From: Street Hawk	Read Replies (2) of 122087

MCLL is a classic short. If there ever was a company that had shot itself in the foot and needed investors to bail them out, this is it. Albeit, they have to suffer through MASSIVE shareholder dilution, change preferred shares to common shares for AT&T, and threw in a little acquisition announcement just for kicks. A desperate last gasp effort to save itself from bankrupty, its drowning from its inability to execute and manage its financial situation. How would you like to have $786 million in long term debt while having 9 month cash flow of $48 million. Look at their long term debt interest, its almost 20%!!! How are they going to pay this off with such pathetic annual cash flow? FIXED RATE DEBT: EFFECTIVE INTEREST PRINCIPAL BALANCE FAIR VALUE INTEREST RATE MATURITY PAYMENTS DUE ----------------- -------------- ------------- -------- ------------- $100.0 million.................... $ 75.0 million 19.28% 2005 Semi-Annually $ 0.2 million.................... $ 0.2 million 11.88% 2005 Semi-Annually $150.0 million.................... $ 90.0 million 19.89% 2007 Semi-Annually $200.0 million.................... $130.0 million 19.08% 2007 Semi-Annually $250.0 million.................... $161.3 million 19.55% 2008 Semi-Annually No principal repayments are due under these notes until maturity. If at maturity Metrocall refinanced these notes at interest rates that are 1/4 percentage point higher than their stated rates, its per annum interest costs would increase by $1.8 million. Based on the outstanding balances at September 30, 1999, a hypothetical immediate 1/4 percentage point change in interest rates would change the fair value of its fixed rate debt obligations by approximately $9.0 million.

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