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Technology Stocks : Winstar Comm. (WCII)

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To: Jason Cogan who wrote (5677)5/3/1998 5:09:00 PM
From: Alejandro  Read Replies (2) of 12468
 
<< It will be difficult if not impossible for equity holders to take out cash flow from the company without first retiring the existing debt holders.>>

I don't have a problem with your definition. However, that is not what I meant. I have no expectation of taking cash out of WCII. Any money we make on the share price, is totally independent of cashflow. Yes, I understand that negative cashflow and bad fundamentals etc do affect the stock price but when you sell higher than where you bought, that is marketplace profit. That is coming out of the pocket of the one who bought my shares at the higher price. That last sentence doesn't read well, but you get the point.

WCII is the typical risk-reward issue. We are betting that what WCII is investing in far outweighs the present negative earnings and the debt load.

Hope that clarifies my original cashflow statement.

See ya
Ali
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