MCLL Metrocall Message Board

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Microcap & Penny Stocks : MCLL Metrocall

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To: Kailash who wrote (206)	2/11/2000 7:41:00 AM
From: Rajiv	Read Replies (3) of 266

Kailash, The convertible preferred stock was sold by Inciscent and not MCLL. Since Inciscent is a start-up and not publicly traded, the conversion terms do not matter. Capitalizing a start-up via preferred stock is fairly common. In this case, there is no Inciscent common stock (yet). I have seen worse balance sheets than MCLL. I don't see bankruptcy in the near-term horizon ( 2 years). The problem with MCLL (IMO), is that the paging business is deteriorating and I don't expect the fundamentals to improve. Note the absence of growth in the customer base and the declining revenue generated/customer (reported as ARPU in the financial statements). I am expecting the ARPU number to keep going down. MCLL has managed to keep its costs under control but cost-cutting cannot go on for ever. The best asset of MCLL is their customer base. Any value added services which they may be able to sell to their existing customers will now be done by Inciscent (50% of which was sold for 15 MM). IMHO the newly found enthusiasm for paging stocks will not last long. Regards, Rajiv

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