Able Telecom (ABTE) Message Board

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Technology Stocks : Able Telecom (ABTE)

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To: MangoBoy who wrote (583)	3/5/1999 10:51:00 AM
From: david james	of 700

Guaranteed profit from Worldcom The following is from the S1. They stated that aproximately 30% of the current backlog is from Worldcom - or about $330 million As part of the MFSNT Acquisition and pursuant to the WorldCom Master Services Agreement, the Company has agreed to provide telecommunication infrastructure services to WorldCom Network on a cost-plus 12% basis for a minimum of $40 million per year, and the aggregate sum payable to the Company for the five-year contract is guaranteed to be no less than $325.0 million, subject to certain adjustments if we default on the WorldCom Note. To achieve these established minimums, WorldCom Network has agreed to award the Company at least 75% of all of WorldCom Network's outside plant work related to its local network projects up to $500 million and the Company has agreed to accept and perform work orders from WorldCom Network for as much as $130 million of services during each year of the five-year contract. 12% of $330 million is over $39 million. With the current number of shares that's over $3/share profit.

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