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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (85761)	6/25/2002 10:57:48 PM
From: Ron Dior	Read Replies (1) \| Respond to of 99280

Haim, Most don't even understand yet what the error actually was. The word fraud has been thrown out their by the media to perk up as many ears as possible. There is no way they can even tell what can and cannot be capitalized as expenditures never mind knowing the real numbers. This will take months. The problem is that at this point in time, it will not matter if WCOM is in a dire situation or not. People will be running for the doors tomorrow. All companies are junk status until proven innocent. Long term is a whole other story. Ron Dior

To: Haim R. Branisteanu who wrote (85761)	6/25/2002 11:12:53 PM
From: Zeev Hed	Read Replies (3) \| Respond to of 99280

Haim, the problem is that they carry on their books thousands of "circuits" that were acquired (and money borrowed to acquire) that used to bring in $23,000 (last year) and no they bring in only $3000, I don't know what percentage these assets are of their total assets, but surely, these assets, if they went on the market will bring only 1/10 of what they are carried on the books. if that is more than $5 B of their total Hard assets", they are cooked. Downgrading of their debt will close the door to restructure their debt, some of which is coming due next year, and a fire sale of assets to raise money will bring these assets to their real market price. Without confidence, they have no access to money. By the way, their receivable are also doubtful, many of these are disputed accounts from the days they were slamming people (maybe they still do) and will never be paid. Zeev