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

To: Lizzie Tudor who wrote (10468)	6/5/2002 1:57:39 PM
From: BEEF JERKEY	Read Replies (2) \| Respond to of 11568

These analysts got me riled up now! Check this out. Enterprise value = $27 billion? Ya know what? I don't think so. Right now the 30 year bond pays 5.6 %. There for it is reasonable to value free cash as worth minimum the multiple of the inverse of this number = 17.86. Here's a totally reasonable scenario given the recent cuts: If WCOM generates $2 billion free cash then enterprise value = 17.86 x $2 billion = $35.72 billion = $35.72 billion - $27.6 billion (actual debt) = $8.12 billion share holder equity = ~ $2.7 per share with $.66 Free cash Flow per share Next year WCOM pays off $3 billion in debt = $ 11.12 billion shareholder equity = ~$ 3.70 equity per share with $.66 free cash flow per share. And so on as time goes by. Heaven forbid the communications industry ever recover because then WCOM could really do amazing. That's with $2 billion free cash which is low ball IMO. Further it assumes zero "intrinsic value" for WCOM's unique positioning or future possibilities. To do that is to assume the communications industry has no future and that is plainly nuts. Any way at a $1.40 /share WCOM is an unbelievable bargain and as close to a "sure thing" as you can get.