Herb,
Looks like the media and analysts have got their hammers out and we can look forward to a couple of days of pounding. More cheap shares anyone?
At times like these a little levity is required to maintain one's sanity.
Better hang on to the levity - that may be all we're left with...
BID on ISLAND at $1.15US and sinking - I don't think it's gonna be pretty!
Regards, Rob
The infamous "analysts said..."
...
Under the revised business plan, 360networks will require additional working capital of approximately $300-million over the next four months. Yesterday, the company said it is in talks with strategic partners including Alcatel SA of France for the funding.
Prior to yesterday's announcement, the company was planning to build a 22,000-kilometre transpacific network linking North America and Japan and designed to make the company one of the few players capable of meeting trans-ocean bandwidth demand in the Asian region.
When it announced plans to build the undersea Pacific cable it estimated the cost at about $1.6-billion.
Meanwhile, analysts said that while yesterday's first-quarter results have already been factored into the stock price, they said the outlook for 360networks remains extremely uncertain.
"We expected a downward revision in their financial guidance, but this was a little more than we had predicted," said Peter Rhamey, a telecommunications analyst with BMO Nesbitt Burns in Toronto.
However, the company said it remains in compliance with its loan covenants. 360networks is continuing to draw on a $1.2-billion credit facility.
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