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Technology Stocks : WCOM
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To: John Curtis who wrote (10562)6/10/2002 12:30:43 PM
From: BEEF JERKEY  Read Replies (1) of 11568
 
"MCI hoped for 3 million customers by the end of the year. So far it looks like they will go way past this," said CurrentAnalysis' Gerwig."

3.5 million new customers x $55 (rough average of monthly cost) x 12 months = $2.31 billion new revenues x 45% margin = $1 billion + added to EBITA

A huge chunk of this $1 billion+ generated would drop right to Free Cash Flow because its "new money" and WCOM already has their and taxes interest charges taken care of with present revenues.

Not bad and thats just the start. This is a good plan. 10 million eventual subscribers is likely a conservative number.

The whole doomsday scenario is based on the idea of WCOM's revenues trending to zero. This just might throw a monkey wrench into those plans. I know it's an impossible idea, especially with the Internet still growing by 80% per year, but what if the data side picked up? Oh my god WCOM would not only suvive it would thrive.
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