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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (36866)	4/29/2002 8:33:14 PM
From: Lachesis Atropos	Read Replies (3) \| Respond to of 68255

WCOM grew too fast. Its is diverse company consisting of old MCI, Wiltel, LDDS cowboys and MFS, UUNET sophists. The company as a whole has never jelled. Reducing staff consolidates a company into a more cohesive whole but management has to go a lot farther to gets its arms around all its internal problems. It is too late now in my opinion. WCOM will have to shed some of its assets; but no one wants the assets it needs to shed. Prior to 1999, WCOM’s business model was growth by shedding assets. This was Bernie's main goal at the onslaught. As soon as Bernie would buy a company, he would sell its assets that would bring in the most money, keeping its essential services. This practice topped off in the summer of 1999. It also served to alienate managers in newly acquired companies. WCOM is now down to shedding its coffee assets and its equipment assets are now down to vintage 1996. Two years ago equipment was much more up-to-date than it is now. It seems the newer equipment has been sold off. This is the essence my chapter 11 prediction (based purely on a gut feeling), I believe WCOM’s assets have less value than the value of its debt. Lawrence