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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: limtex who wrote (12424)	4/16/2001 10:36:43 AM
From: John Lacelle	Read Replies (1) \| Respond to of 12468

lim, I think what has everyone spooked about WCII and its competitors is that they all took on a lot of bond debt in order to finance their expansion. Now that the economy has softened and the tel-com markets don't look as hot, people think that these companies will go under. Personally, I'm gonna take a chance and buy some tomorrow since I figure it is a great turn around possiblity. You gots to take risks in turnarounds... -John

To: limtex who wrote (12424)	4/16/2001 3:31:36 PM
From: Bernard Levy	Respond to of 12468

Hi Limtex: Winstar's business case has not changed much, but in the telecom world, the power has shifted from equity holders to debt holders. To debt holders will flow all the rewards. It would be a real pity if Winstar cannot be restructured, but realistically, right now the common is worthless. I hope that a prepackaged BK can be put together which would allow Winstar to reemerge quickly with a better capital structure. That would be the point when it makes sense to buy shares, but not now. Even at 30 cents/sh, buying WCII shares right now is just like giving money away. Best regards, Bernard Levy