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Technology Stocks : 360Networks - TSX - TSIX

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To: James Calladine who wrote (184)	5/12/2001 6:10:46 PM
From: Dexter Lives On	Read Replies (1) of 449

I understand TSIX debt has sold off very sharply. If the capital availability is rock-solid, why would this be so? Jim, Your point is well taken - the markets have priced the bonds down (the junky ones anyway) to basically salvage value. It should be noted there is a divergence here: the equity market is actually pricing a stronger probability (though still small) that the company will recover to return value to shareholders, the owners of the residual value of the firm after all creditors are repaid. This disconnect reflects (I believe) the more speculative nature of the stock (vs. the bond). Who's right? I don't think we have enough information. This upcoming financial report will provide better evidence than the various analyst and strategist opinions as to the direction here; however I don't think we'll get all of the answers... Regards, Rob

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