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Technology Stocks : RCN Corp. (RCNC) - Voice-Video-Internet
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To: keta who wrote (716)10/3/2002 12:11:54 PM
From: Howard Salwen   of 720
 
Lots of people think this company has too much debt. Moody's lowered their rating on RCNC yesterday or the day before. But, RCN has just sold off a standard cable operation in central jersey for $245M. Moody's has not taken that into account and won't until the deal actually closes (I think) in Feb. Moody's also doesn't take into account the fact that the burn rate at this company has been going down steadily. Moody's says that if RCN cuts capex, they will not be able to achieve EBIDTA positive in 2003.

Those of us who think Moody's is too conservative are holding this stock. Some who think Moody's is way off the mark are buying. Oh, by the way, RCN has one more property to sell for a lot of money. It is part ownership of a cable company in Mexico, (again, I think). Like the NJ property, it doesn't fit with RCN plans and is a good thing to sell....
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