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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 670.31-1.1%Nov 6 4:00 PM EST
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To: Don Green who wrote (61575)10/30/2000 3:02:04 AM
From: jttmab  Read Replies (1) of 99985
 
A peripheral news item of interest.

Economy Brakes as Funds Slow

By Steven Pearlstein
Washington Post Staff Writer
Monday, October 30, 2000; Page A01

At a time when the stock market is faltering and economic growth has slowed dramatically, the fate of a small telecommunications company outside Denver helps explain a great deal about why the headiest days of the New Economy may be passing.

Back in April, ICG Communications Inc. had just raised a billion dollars in financing from media mogul John Malone and Dallas tycoon Tom Hicks. Microsoft Corp. had signed up as customer and blue-chip companies such as Lucent Technologies Inc. and Cisco Systems Inc. were so anxious to sell the company equipment that they had agreed to finance much of the purchase price. On the stock market, the company was valued at $2 billion.

Today, ICG is in shambles. Its stock is virtually worthless and its high-risk "junk bonds" are selling for 20 cents on the dollar. Malone and Hicks have all but written off their investment and the company's new chairman, the third in two months, is desperately trying to sell the firm to avoid bankruptcy. Ten percent of the work force has been laid off.

.......continued ... washingtonpost.com
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