Winstar Comm. (WCII) Message Board

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Technology Stocks : Winstar Comm. (WCII)

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To: Alejandro who wrote (8714)	10/16/1998 12:44:00 AM
From: Bernard Levy	Read Replies (2) of 12468

Hi Ali: If something was seriously wrong about Winstar, what do you think would be the chances that no one on this thread (or on the Yahoo thread) would have heard about it? I do not think that what affects Winstar the stock relates to the fundamentals of Winstar the company. The problem probably has to do with the existence of the convertibles, and there are probably sophisticated strategies that involve going long the bonds while shorting the stock. I do not know what the current yield is on the bonds, but I imagine it could be as high as 25% right now. I noticed that GSTX has also some convertibles for which, like Winstar, Morgan Stanley was an underwriter. GSTX seems to trade in a manner very similar to Winstar-- it was down today. On top of it, Morgan Stanley just downgraded GSTX today (Stephanie Comfort handiwork?) I think that what we see reflects the trading strategies of the pros, not the business fundamentals of Winstar. We need to remain patient until bond spreads start narrowing again. Best regards, Bernard Levy

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