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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: DaiTN who wrote (9265)	2/8/2001 10:37:33 AM
From: Sharck	Respond to of 37746

DaiTN, will take a look ah remind me...

To: DaiTN who wrote (9265)	2/8/2001 9:31:35 PM
From: Sharck	Read Replies (1) \| Respond to of 37746

DaiTN, "Given the fact that they burned cash like there is no tomorrow" I think you hit the nail right on the head. Burn rate is "the" concern here. MCOM reported 4thQ losses at $3.70/share. Total cash reserves were $526.8 million, down from $79O million at the end of the previous quarter, thats some burn rate. CEO says "The new prudent approach reduces the amount of capital required and provides additional time to secure more extensive financing on favorable terms." Guess the concern is who is going to come up with the money. The taps of a secondary are not nearly as free flowing as they once were, and though with cash reserves one might not assume they need any, but again, at that rate they go to zero in one year. Will check a bit further and understand their core competencies and strategic positioning.