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Technology Stocks : WCOM
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To: Rock_nj who wrote (10481)6/6/2002 11:49:45 AM
From: telecomguy  Read Replies (2) of 11568
 
How do you lose money RESELLING??? This is very strange. If Wcom doesn't have the cellular network infrastructure costs, this division should be spinning free cashflow assuming that they already made the investment in the past to ACQUIRE the customer base.

Either Wcom was managing their wireless resell operation quite badly or they are not disclosing the pro forma financials of this division which may well be generating cash. (Wcom may not want to admit that wireless is generating free cashflow because that would tip off the market that they are desperate to raise capital to pay off the loans even at the expense of reducing their money making resell operation....).
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