SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : 360Networks - TSX - TSIX
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Sal Pugliese who started this subject6/2/2001 3:46:33 PM
From: Ian@SI  Read Replies (2) of 449
 
From Barron's lead article...

Q: On to a pan.
Cahill: We talked about the shift from dark fiber to wavelengths in long-haul
data traffic. One of the companies that is at risk there is 360networks. It is
trading at $1.40. But it still has over a $1 billion market cap. Here's the big
disconnect. The high-yield bonds are trading at nine to 10 cents on the dollar.
The high-yield market sometimes gets these things right before the equity
market does. The bonds are saying there is no recovery value for this. One
market is completely wrong. 360 Networks acknowledged on its last
conference call they need $300 million just to make it through this fiscal year.
Raising that amount in this environment is going to be a challenge.
Furthermore, the $300 million figure is based on the assumption that revenues
are going to grow. Typically, companies that have bonds trading in the
single-digits to the dollar don't have revenues or EBITDA that grow. Typically
if a company goes bankrupt, there has been a recovery value of 30 cents on
the dollar. What people have come to realize with these telecom-service
companies that have gone bankrupt in the last couple of months is the
recovery value is almost negligible for the bond holders. The equity
completely gets wiped out.

interactive.wsj.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News