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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Dexter Lives On who wrote (19497)	2/24/2002 3:51:27 PM
From: kech	Read Replies (1) \| Respond to of 196538

Sprint PCS a worthless network with no proven profit generation power? Don't you think that is a bit extreme?

To: Dexter Lives On who wrote (19497)	2/24/2002 11:23:08 PM
From: lkj	Read Replies (1) \| Respond to of 196538

Hi Rob, I did some quick calculation and made some general assumption on things like PCS' tax rate. I am afraid that you are correct. The total CAPEX will have to come from the debt market. My feeling is that a debt deal can still go out as long as there is enough protection for the buyers. (Don't forget that AT&T was able to dump 10+ billion on the market last year with a shitty long distance business.) Overall, the cashflow looks pretty bad. Having more asset than debt does not prevent a company from declaring Chapter 11, though PCS has not gotten to that point. If a price war starts, PCS and FON may not have many choices. An interesting question is whether PCS has a viable business model after the financial restructure. You seem to suggest NO. Best regards, Khan P.S. I have been getting busy signal on regular basis from Sprint in NY State. (Roughly 30% of the time.)