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To: Killswitch who wrote (111096)	10/24/2000 8:08:26 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

I found it strange too that they wouldn't comment on possible cash flow positive.. my take is they aren't completely sure they will be cash flow positive in those last 3 quarters of 2001 and didn't want to commit yet. Could be. But they did very plainly state they expect no more than 5% losses on their total $4billion ini 2001 revenue. Are you unwilling to concede the "going out of business" point because you think they will never be able to raise more cash and will eventually die off in perhaps 2004 when all cash runs out? Seems far fetched based on their improvements. I would if I believed their guidance. However, their guidance has been consistantly wrong since inception. For example, cash this year was to be handled by CAPX but they burned $780 million so far. That is not even close to cash guidance. I have to look further at the income statement but I believe cash burn was $24 million not $4 million when TOY is brought into the picture. Also, there seems to be very little allowance for the interest payment due Januay 31, 2001 which is a cash payment. I admit I need to study this more but simply, theirguidance has been meaningless in the past in my opinion. Guidance in 1997 was Q4 1999 as being profitable and all of 2000 being profitable. That was off by about a billion dollars so far. Thoughts?? Glenn