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Technology Stocks : Moderated Comdisco

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To: KevRupert who started this subject10/8/2000 12:44:22 PM
From: KevRupert   of 86
 
CDO's Financials as of 09/01/2000 Value Line Report:

Facts:

1) Credit Rating: B (Prior to recent events)

2) Total Number of Shares: 152,178,205

3) Market Cap (assuming a current price of $14 per share):
$2.13 Billion

4) Value Line states earnings predictibility has decreased dramatically

5) Total Debt: $5,527 million

6) Debt due in 5 years: $5,000 million

7) LT Debt: $1,950 million

Questions:

1) Is $5,527 million debt reasonable for a $2 billion company? Assuming the industry, historical trends of this company, I don't know if this is high, low, or just right.

2) What is the company's business plan? Discovery services? Web Hosting?

3) What is the status of the venture tracking stock? I listened to the conference call numerous times and was under the impression that it would definately occur. If the situation has changed (obviously the market has!) then inform the investors -- be open and honest. Why keep investors in the dark?

I spoke to the CFO in the past couple of months. I thought that the company would change a lot of factors that I had concerns about with Comdisco.
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