Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (71069)	11/28/1999 2:35:00 PM
From: Ed Beers	Read Replies (1) \| Respond to of 132070

All I see is that a subsequent derivatives transaction changed their effective interest rate to a adjustable rate. It is not clear to me that this is a good thing. I didn't see any discussion of the purpose for raising the money. Ed

To: Chuzzlewit who wrote (71069)	11/28/1999 5:09:00 PM
From: Les H	Read Replies (3) \| Respond to of 132070

The other issue he could've injected is their 'improved' cash position is also due in large part to stretching payment to vendors and by speeding up collections (which is marginal). That may be about $ 400 M according to the same table I posted earlier. They may be at 60 or more days on their accounts payable now. Last I recall, it was about 56 or 57. I would expect there to be a limit to using this approach. I found it odd that their cash exceeds their book value, about $ 1.85ish to 1.35ish. Is that caused by acquisitions, or is the number in error?