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To: Bill Harmond who wrote (131066)	9/9/2001 12:08:54 PM
From: GST	Respond to of 164684

<I'm not interested in 20/20 hindsight. Mine or yours> We are not talking about hindsight. You have been consistently wrong in the debates we have had, yet you persist in your high-handed way to talk as if nothing has happened and we are just waiting for the end of what you call a "down cycle". Well I am not waiting for an end to the "down cycle". I am trying to assess the damage from the ending of a stock mania, and the damage from the maniacs who put us in such a bad situation. Extreme price distortions and misallocation of capital are damaging to the economy. They are a sickness. The economy will not return to health by embracing the sick form of investing that, for a brief moment in time, made you look like you knew what you were doing by cheerleading the bubble.

To: Bill Harmond who wrote (131066)	9/9/2001 4:06:50 PM
From: H James Morris	Read Replies (2) \| Respond to of 164684

Bill, re: AKAMI and Digital Island. AKAM $345.50 01/03/00,09/07/01 $3.20 ($342.30) -99.1% Akamai >I like Akamai (AKAM:Nasdaq - news - commentary). The words "content delivery" and "Internet infrastructure" make me cringe. But they have some of the smartest guys on the planet working for them, and $260 million in cash. As I pointed out, the name means "smart" in Hawaiian. These are not just smart guys. These are rocket scientists. I like betting on rocket scientists with cash. Who knows what might come out of their laboratory? However, they have $300 million of convertible debt outstanding. This represents stunningly stupid capital structure management. Not exactly Morgan Stanley's finest moment. Oops. I named a name. The bonds are trading in the 40s with a 24%-plus yield. I like the bonds. When Cable and Wireless bought Digital Island, the convertible bonds tripled while the stockholders received no premium. Importantly, Akamai is cutting its burn rate ($73 million to $54 million quarter over quarter) and its capital expenditures ($24 million to $18 million quarter over quarter). Akamai's EBITDA losses are declining at a fast rate. Moreover, they claim to be fully funded. While more people lie about their fully funded status than lie about their golf game or investment performance, I believe these guys. Again, it's not a stock. It's an option.