Limtex:
I can't really get a handle on you. You continually claim that the sky is falling, that nobody in their right mind should own stocks of any kind in this market, but that Winstar continues to be the best investment and will somehow be your savior. Which is it?
As for my prejudice against Winstar, I think that's overstated. I don't hold any ill-will towards the company. My belief that Winstar was overvalued was based on analysis, which I tried to explain at $40 but was rudely dismissed. Let's look at the accounting issues one last time.
It's not the negative earnings by itself that has the market so down on Winstar. Negative earnings don't help, but it's the negative book value that really has investors spooked. Why not sell for $13 today, when if they liquited the company tomorrow, you would get nothing and still owe creditors an additional $5?
Add to that the fact that every piece of future earnings is already spoken for, by a set of anxious bondholders, leaving equity holders last in line. With the market for high yield financing apparently closing, the very lifeblood of Winstar, the market for Winstar's equity looks even worse.
I am sure there will be a technical rally sometime in the next 2 weeks, and even Winstar will show some temporary life. But I still fail to see the savior arguments.
Religious devotion does indeed die hard.
Regards,
JC
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