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Technology Stocks : Allegiance Telecom (ALGX) -- Ignore unavailable to you. Want to Upgrade?

To: FlameMe who wrote (120)	11/28/2002 4:58:01 PM
From: Dale Baker	Read Replies (1) \| Respond to of 145

I will believe free cash flow positive when I see it in black and white. Look at their last report - they are a very, very long way from producing real profits after interest and capex. Dig into the balance sheet and cash flow statement from the last 10-Q: edgar-online.com They really aren't pretty. Cash down $70 million, accounts receivable up almost $60 million, long-term debt up $200 million...Stockholder equity is down more than 2/3 in nine months. And guess what - they can't guarantee that any of the bondholders will sell their debt at 16 cents on the dollar, a major tender for buyback drives up the price. Don't kid yourself they can buy back $1 billion in debt for $200 million cash, or that the banks would ever let them spend so much while the banks are still first in line as creditors. If they don't reverse the cash flows in a serious way, their only lifeline will be begging the banks to let them stay out of Chapter 11. Hard to fudge the nitty gritty in 10-Q's.....I wouldn't hold the common shares in ALGX on a bet now.