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Technology Stocks : WCOM
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To: Rock_nj who wrote (10494)6/6/2002 12:00:28 PM
From: telecomguy   of 11568
 
I own/run a swichless reselling operation in Europe which is extremely competitive (just as competitive if not more so than US!). We make gross profit margin of 40%+ and I spend ZERO on switches/circuits/facilities and network engineers.

After the initial ONE year of investment, we were cashflow positive and now we are generating bottom line net profit of 20% ON REVENUE!

NO ONE should lose money reselling long-distance if it's managed properly. I have to think that WCOM is NOT losing cashflow -- so again this is likely a move to RAISE capital, not necessarily to stop the cashflow bleeding.
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