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Gold/Mining/Energy : Rogers Communication
RCI 37.82-2.2%Dec 3 3:59 PM EST

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To: Le Requin des Bois who wrote (75)1/16/1998 11:07:00 AM
From: hsg  Read Replies (1) of 189
 
Leverage is a very powerfull force. It can kill a company as RCI's debt is currently doing, or provide equity holders with a magnified growth line. As long as Rogers can earn more on the borrowed capital than they are paying to bondholders shareholders will benifit. I still think that they will benifit from the current turmoil be refocusing and trimming down. Their competitors (look at the share prices of all the new cell co.'s) will all be forced to do the same and those that do it the earliest are the first to get back to solid financial ground. I expect to see a flurry of cost cutting announcements from Rogers soon...
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