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


To: BEEF JERKEY who wrote (10470)6/5/2002 2:13:42 PM
From: Rock_nj  Respond to of 11568
 
Let's face the facts WCOM fans. WCOM is doing exactly what it needs to do to survive. If this company is going to go bankrupt, why would they bother selling assets, getting rid of the MCI tracking stock, and laying off employees? These are the steps that WCOM should have made 6 months ago to avoid this whole mess in the first place. The new CEO is doing what needs to be done to get WCOM healthy. All of these efforts will culminate June 14th when the new bank financing is announced at the annual meeting. WCOM looks like it's ready to play ball and with a little luck from the economy it will survive.



To: BEEF JERKEY who wrote (10470)6/5/2002 2:22:59 PM
From: Oeconomicus  Read Replies (1) | Respond to of 11568
 
Beef, I agree with your conclusion, but you're not giving them enough credit (no pun intended). Free cash flow is AFTER debt service while enterprise value includes debt. You should value the enterprise on cash flows available to all security holders (cash from operations less CAPEX or EBITDA less CAPEX).

Regards,
Bob