Ray, BWNG filed an 8k on July 18th:
biz.yahoo.com
<Broadwing Corporation provided notice to the holders of its Senior Convertible Notes that in accordance with the terms of the notes and the Securities Purchase Agreement, dated February 9, 2004, relating to the notes, Broadwing was electing to pay in cash both the interest of $1,215,264 due on the notes on August 19, 2005 and the installment of principal of $32,142,857 due on the notes on that date. >
Barron's Warren Isabelle interview last week:
<What else have you been buying?
A controversial one, Broadwing. We like to buy something for nothing. They are losing money, although they have a pretty good cash pile of about $300 million. They have convertible debt they can pay either in cash or stock. If they pay it all in cash and take their operating losses, a case can be made they can pay it off and go through their cash by year's end.
What's killed the stock is the convertible arbitrageurs have been shorting the stock and buying the convertible. If they decide to pay in stock, the convert people can get the stock at a much cheaper price basically and cover their shorts. However, the company elected last quarter to pay the convertible holders in cash.
It's still not clear why you like this.
Broadwing bought fiberoptic equipment from Cincinnati Bell. They bought $3 billion worth of equipment for $200 million. Now naysayers say there is a glut of fiber. But I say that's still a pretty good deal, and fiber is not obsolete by any means. They have cash.
And they have $1 billion in net operating losses that could be attractive to another company and could be folded in and save people real money. The final thing, and most important of all, is its foundation of 5,000 customers and 18,000 miles of nationwide fiber- optic lines.
Any sense of what company would be interested in this?
It has been suggested if Qwest can't get MCI, they might turn around and buy something like Broadwing.>
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Besides the OSX, lets mine some natural resource plays.
schaeffersresearch.com
You realize that indirectly you are shorting hootersair.com |
