PSIX up 26.5%, Takeover(?) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PSIX up 26.5%, Takeover(?)

PSIX 65.34

+4.7%

Dec 18 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: bob zagorin who wrote (2182)	3/15/1998 12:38:00 PM
From: Randy Tidd	Read Replies (1) of 5650

> 5. Interest expense driven by substantial debt financings during > the next 12-18 months. We estimate that PSIX will remain free cash > flow negative as it continues to build-out its Internet > infrastructure in the United States and abroad. Given these > circumstances, we believe PSIX will require roughly $400MM-$500MM > in debt facilities during the next several quarters to fund > expansion of its growing Internet infrastructure. This item concerns me -- getting into a debt-leveraged situation is likely to cause near-term problems for the company's financial picture. They have already been burning the cash raised from their original IPO at a rapid rate and are already sporting a debt/equity ratio over 1.0. I hope that they don't give into the temptation of diluting their stock to raise cash (especially now that the stock has recently seen a sharp increase in value) since that would significantly decrease shareholder value. Again, if you believe PSIX's long-term (5+ year) strategy, then this is another step in achieving that. I hope that the success they see (if they see it) makes up for all of these current issues. Randy

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next