I couldn't aggree more, I posted the following this AM on another board in an answer to the 700M notes WCG just placed.
By: samoyed $
Reply To: 1136 by WhosUrPapa $$$ Friday, 14 Jul 2000 at 9:11 AM EDT
Post # of 1140
?Papa: The selling of notes hopefully will "prop them up" with near term working capital and long term for development. If they do in fact turn to profitability in 2001, this could possibly alleviate the need for a secondary later this year, however, senior notes are usually not convertible and thus no registration, but it is still debt and interest affects profits and bottom line, not EBITA reporting as WCG does to the street. More shares would no doubt dilute profits, so hopefully mgmt. is on the right track here.
As for profitability in 2001, management touted this a couple of months ago, but recently in their expanded development conference call, they did not seem to support what they had previously told us and the street. Moral of the story is, they lost credibility and they need to gain that back or we could stay in the low to mid $30's range for a few months. Support appears to be strong around $30± and yesterday we had a good number of block trades showing good support, closed on an up tic with last sale of around 30k shares (don't recall the exact number). We will probably see some resistance around $35, but could move quickly higher if we can blow by that. However,I would not be surprized to see us retest $30 if we do see a pop to $35 near term though. Right now with the daily spread we have been seeing, this is a trading stock, as many want it but are waiting for mgmt. to do something positive.
Right after management pulled the debacle, I reversed my weighting, 75%/25%, to WMB/WCG respectfully. I am also again trading WCG and thus far resolute in my actions.
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