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.

Non-Tech : Conseco Insurance (CNO) -- Ignore unavailable to you. Want to Upgrade?

To: Cogito who wrote (1854)	7/16/2000 7:37:46 AM
From: donjuan_demarco	Read Replies (3) \| Respond to of 4155

Allen, to the extent there is a short term mentality among shorts, it is because CNC has some very serious short term problems to solve. First, CNC has to repair its credit rating. A. M. Best said they would downgrade again unless GNT was sold in the near future. So, CNC has to convince them to refrain from further downgrades (and to INCREASE the ratings) within the next few weeks. Second, CNC has quite a bit of bank debt coming due in September. This is another immediate problem; Wendt cannot wait 90 days to figure out a solution; he has to do something within the next two months. With regard to the pricing of CNC debt, I don't see how anyone could argue that it does not reflect a lack of confidence in CNC's ability to repay the debt. Just look at the YTM of the debt coming due within the next four years.