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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: kfdkfd who wrote (79328)	12/16/1999 2:46:00 PM
From: R.E.B.	Respond to of 90042

Time Warner Telecom (TWTC) update - here's an tid-bit from the secret DLJ report: "Debt-funded expansion could double the size and value of the company's operations. We believe that Time Warner Telecom has ample capacity to raise additional debt. The company has an under-leveraged balance sheet, above average profitability and significant fixed assets. Raising $1.25 billion of additional debt would result in a 3:1 debt-to-equity ratio and place the company more in line with its peers. The company could use the funds to accelerate its expansion beyond the one additional market planned for 2000. Such an expansion would greatly leverage the company's existing nationwide data network, nationwide presence, and scalable back-office systems. Since the entire company was built with less than $1 billion of invested capital, we believe that additional debt could double the company's geographic reach. Looking at the network investment alone could add $30 to the current stock price simply by applying the company's current trading multiple." DLJ; December 6, 1999