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Technology Stocks : EARTHLINK (ELNK) -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (2386)	3/27/2001 7:37:46 PM
From: matt gray	Read Replies (2) \| Respond to of 2553

4.7 million paying customers (second only to AOL), booming DSL business and access to the major cable systems (now including Comcast). Oh, don't forget - loads of cash and likely cash profitability this year. Second now, wait 6 months and they will likely be 3rd. Booming DSL business, this would be a first for a non bell incumbent to have a booming DSL business.....all the others are going bust. Access to major cable systems...this is yet unproven since they are only in trials. Loads of cash but they are burning at $370 million last year. Couldn't find their total debt number. IMHO this would be the deciding factor on whether or not they get bought. I watched 2 other companies recenty file chapter 11 [npnt and gstx]. The thing that sunk their possiblity of a deal was the assumption of their debt. Nobody will buy a company if they are buying huge debt as well. The suitor will simply let them fold and buy their assets at auction....at least thats what happened for those two companies. Any move now buy management to sell shares will cause this thing to collapse since management started the rumor that they are primed to be sold. Broadwing management did the same thing a couple of years back and ran the stock price up only to see it plummet after the rumor wore off. I haven't got a position but this company is highly suspect. IMHO a likely candidate for buyout wasn't mentioned by the recent scandal article namely an MSO who wants to go into the ISP business. The article was written in pure conjecture something I would expect on a Yahoo board.