Interesting conversation with my roommate. I was just pushing his buttons but as you can see the perception of WCOM is low, even at WCOM. He is a contractor that works in IT - billing, we have a side business and lease a T1 from WCOM. This is posted from an instant message so please excuse the spelling.
[07:42] Don: paul, you there
[07:42] Don: ?
[07:42] Paul: yea
[07:43] Don: hey bro, I'm going to report your Amex corp card lost so they'll send you out another one and Wcom wont be able to charge on it anymore
[07:43] Paul: ok, why
[07:44] Don: because they keep charging on it, even though we have a credit
[07:44] Paul: ah
[07:44] Paul: well you know their billing is messed up
[07:44] Don: and we are going to have to switch to the other carrier (Atlantech or someone) to get a better deal
[07:45] Don: also if they go bankrupt we'll just be in there with all the other creditors
[07:45] Don: the next company that gives us service wont have to honor those credits
[07:45] Paul: that's a big IF
[07:45] Don: (although I think they will if we have service with them)
[07:46] Don: they are negotiating a Chap 11 settlement (bonds for stock) deal now
[07:46] Paul: under chapter 11 only the shareholders get screwed not the employees or customers
[07:47] Paul: so our service would be uninterupted
[07:47] Paul: plus where did you hear that
[07:47] Don: chapter 11 is a partial bankruptcy
[07:47] Paul: i haven't seen that in the news anywhere
[07:47] Paul: sounds like rumored bashing
[07:48] Paul: probably a short
[07:48] Don: they negotiate with ALL creditors to forgive partial debt to keep the company going
[07:48] Don: dude, you dont realize how bad of shape this company is in
[07:48] Don: customers are not ordering any new services
[07:48] Paul: i just want to know where you heard that
[07:48] Paul: so i can post it on SI :P
[07:49] Don: they are were paying more here because of the idea that they were getting better service, now there is the perception that the service may actually be getting worse
[07:49] Don: yahoo news
[07:50] Don: the sales guys dont care anymore becuase they arent getting any commissions
[07:50] Don: and no one wants to buy
[07:50] Paul: can you be more specific than yahoo news!
[07:51] Don: they dont get commissions on existing accounts and the HALF that didnt let go are forced to handle the other half of the customers who they never got commission on in the first place!
[07:51] Don: nope
[07:51] Don: it's been a couple of days
[07:51] Don: and Bernie and Sullivan refusing to testify ain't going to help the stock today either
[07:51] Paul: no, but those two are going down anyhow
[07:54] Don: the only way out for wcom is to sell some core assets like MCI and the consumer stuff to IDT
[07:54] Paul: IDT is generally considered a joke
[07:54] Don: but that still leaves them 25 billion in debt with no cash cow :(
[07:55] Paul: exactly, a bad move i'd say
[07:55] Paul: only the banks can force BK, the board won't vote for it
[07:55] Paul: they need to sell the wireless and Digex
[07:56] Don: they have sold the wireless already (or will), but dude they arent going to have any customers, every one is leaving!
[07:57] Paul: the company announced that they haven't lost ANY of their top 100 customers
[07:57] Don: sales are going to plummet (just like Andersen) and the bond holders will forclose
[07:57] Don: because they are under contract still
[07:57] Don: when the contracts are up 6 months to 2 years, they are gone
[07:58] Paul: whatever, you are just bandwagoning
[07:59] Paul: they just signed Wells Fargo
[07:59] Don: do what you want, but I'm telling you from the inside what I think is going to happen
[07:59] Paul: why would they sign a contract like that
[07:59] Paul: the inside, HA
[08:00] Don: that was a month ago before the scandals
[08:00] Paul: yea, i guess you and roy eat lunch with John S huh?
[08:00] Don: he doesnt even see the sales guys
[08:00] Paul: hey see if you can get me on the board
[08:01] Don: whatever dude. You'll face reality one day. I have tons of stocks like this and I've never seen one go to "E" and come out
[08:01] Paul: don't lose hope :D
[08:01] Don: too late :(
[08:04] Paul: i hope you don't switch out T1 just to prove a point |
