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Technology Stocks : WCOM -- Ignore unavailable to you. Want to Upgrade?

To: Elmer who wrote (10184)	5/16/2002 10:18:46 AM
From: Oeconomicus	Read Replies (1) \| Respond to of 11568

I would assume WCOM's competitors are smaller and also have financial problems of their own. Size of competitors depends on what part of WCOM/MCIT's business you're talking about, but most are large companies with plenty of debt and yes, most competitors are getting beat up as well. If anyone can come up with a significant sector where the competition is big, highly profitable and relatively debt free, do share. As for customer attitudes, I'd think most realize that the risk of service interruptions resulting from financial issues, even in BK, is infinitely more remote than BK itself. I think this question came up in the CC the other day - at least as conveyed to the thread by others. Regards, Bob

To: Elmer who wrote (10184)	5/16/2002 10:46:46 AM
From: Oeconomicus	Read Replies (2) \| Respond to of 11568

I think the bears forgot how to add and subtract. This is from a bond market update this morning: "Unless and until the new bank deal is finalized, this emergency borrowing leaves the company facing not $3.1 billion in potential maturities next year but nearly $6 billion," wrote Carol Levenson, director of research at fixed-income research service Gimme Credit. "It also lifts debt/projected EBITDA (earnings before interest, taxes, depreciation and amortization) to 4.5x." She seems to think the $2.65 billion drawn yesterday just evaporated into thin air. What kind of credit analyst ignores cash? Plus, if the line was drawn to preserve a "term-out" option, then her conclusion that this would increase next year's maturities by $2.65 billion (I like the way she rounded up by a quarter billion, BTW) is just plain ignorant. Even if they don't get the new bank lines and use the money elsewhere rather than paying it back right away, all they need to do is exercise the term-out and it becomes long-term debt. Did these "analysts" buy their MBA diplomas on Ebay or just sleep through the finance classes?

To: Elmer who wrote (10184)	5/16/2002 11:13:04 AM
From: BEEF JERKEY	Read Replies (2) \| Respond to of 11568

I think so many things are being overlooked as WCOM tanks WCOM does offer an nice package of services and a unique global network. Communication is not going the way of the dinasor. These same morons (read David Faber) bashing WCOM are shutting the gate after the horse has gone! Two three years ago CSCO et. all were trading at 200 pe's and this was termed justified because the Internet was going to experience exponential growth forever. Now its the exact opposite. There will never be growth again. You really have to scratch your head. These "analysts" are always late and always wrong by 180 deg! It does add credence to the idea that they want you to buy when prices are high and sell when prices low. WCOM simply is not ENE. Its as if they are being punished for ENE's transgressions.