And no sooner did I type the prior message than SSB comes out downgrading WCOM to an underperform (per Bloomberg TV): biz.yahoo.com
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Monday June 24, 8:51 am Eastern Time
Reuters Market News
RESEARCH ALERT-Salomon cuts WorldCom stock rating
CHICAGO, June 24 (Reuters) - Salomon Smith Barney on Monday said it cut its rating on the stock of telecoms company WorldCom Inc. (NasdaqNM:WCOM - News) to "underperform" from "neutral."
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Analyst Jack Grubman said in a research note that he cut his estimate for the company's WorldCom Group unit's 2002 earnings before interest, taxes, depreciation and amortization (EBITDA) to $6.7 billion from $7 billion, below the company's forecast of $7 billion to $7.5 billion. He said there is a risk of the forecast being lowered again.
He also cut his estimate for WorldCom Inc.'s 2002 EBITDA to $8.2 billion from $8.5 billion.
Grubman said since his last research note spending by large corporations has gotten worse, the company's debt rating has been cut and the urgency for a recapitalization, which would significantly dilute equity holders, has increased.
He has a $1 a share price target for the stock, which closed trading on Friday on the Nasdaq at $1.22.
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WCOM pre-market last sale indicator now at $1.12.
It looks like todays gonna be tough, and very interesting to watch.....
John~ |
