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Technology Stocks : WCOM

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To: BEEF JERKEY who wrote (10626)6/14/2002 8:09:04 AM
From: paul t   of 11568
 
Will WCOM hit $500 million Free Cash Flow This Quarter?

Previous guidance was for $250 million Free cash for this current quarter. Right off the bat you can add $71 million to that number from the MCI dividend.
I thought they were going to pay out one more quarter!? They said capex would be cut 1 billion THIS year. Since they have already spent $1.25 billion of a $3.5 billion $ budget that leaves capex expenditures of $2.25 bil. /3 per quarter rest of the year or $750 million per quarter capex. "IF" they can spend less this is true but on the surface they appear to be over budget with 3 quarters remaining. There for WCOM should spend $ 333 million less on capex this quarter than previously budgeted. After tax that leaves $199 million to add to the $250 million and $71 million to get a total of $520 million Free cash for this (June 30) quarter!

I like your thinking but I am not as optimistic. I put my faith in this stock that it is down from over reaction to false fears and the future should be brighter. The biggie I see now is the SEC investigation. What is going on there? Aside from that if Bernie pays us back, we get a pretty penny for wireless and trim some fat I believe we will recover and sentiment will do a 180 again.

I will have to agree with ... Seems that as soon as it becomes accepted that WCOM can consistently generate ~ $500 million per q free cash flow the attitude towards the stock price "should" change dramatically.
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