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Technology Stocks : ACNS: American Communications Services

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To: jim detwiler who wrote (43)7/31/1997 6:38:00 PM
From: Mahesh   of 102
 
Jim, you have been a constant bull on this company and the recent performance has proven you right. However I still am very nervous of getting into this stock because of their cash burn rate. When I look at their balance sheet, I wonder why are they not in bankruptcy. Out of 220M in bonds, they kept 70M in escrow for interest, that leaves 150M, your post talks of only 75M - What am I missing? What happened to the other 75M? As far as other CLECs, when I look at BFPT - they are so much healthier as a company and definitely a good acquisition target by the large IXCs.

As far as revenue growth, it has to be mighty substantial, in excess of a few hundred percent, before this company can show positive earnings, leave alone - repayment of debt.
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