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To: accountclosed who wrote (32994)	4/13/1999 12:54:00 PM
From: TheStockFairy	Read Replies (1) of 86076

LOL, they have the strangest balance sheets I have ever seen! Pretty much what they did is double all of their expenses to increase their sales by 50% It looks like their capital expenditures are remaining constant, so they have the satellites they need to make their cable system work. They borrowed to the hilt to get the sattelites on long term loans. As for the book value, think about it. I bet their thinking was that they would pay off their investments in equipment by recurring revenue to subscribers, but they needed the satellites first. Threfore, they will have a negative book until for a long time, and they need about 4x as many subscribers as they do now to turn a profit. If they keep increasing in the subscriber base at this rate, it will take them about 5-10 years to break even. marketwatch.newsalert.com MAY 85 (.QHSQQ) (puts)is selling at a buck and a quarter. Very interesting.

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