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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR) -- Ignore unavailable to you. Want to Upgrade?

To: i-node who wrote (554)	4/23/2003 11:44:14 PM
From: pcstel	Read Replies (1) \| Respond to of 3386

Hell, I've done it a million times myself. A customer owes me money, can't pay, the first thing I do is put it on a note. Do you make people who will owe you money in 2006 for services that really won't be tendered for a couple of years write you up a note? Like I said.. When GM starts to re-evaluate the business model and starts doing the "future payables" to debt conversion.. Then you have to take a closer look. "You try to make out as thought it is some kind of under-the-table trickery. You forget GM is in the financing business." Oh!! It's not trickery... It's just a major warning sign that someone has lost confidence in someone else.. Kind of like when you lose confidence in a client and demand a note instead of providing a A/P. For the common, there is no note. (Unless they want to buy the debt).. Just the loss of investment. GM is just making sure that if/when it goes reorg, that they are standing in line as a creditor.. When you own the common.. You have to be just a bit worried about these kinds of realignements into debt. "This is utter nonsense. No finance person worth his salt would wait until a business was "in trouble" to get the debt secured." Quite contrary.. When a business is "in trouble" is when your debtor is trying to avoid a "covenant violation" or a involuntary filing by a creditor... That is when you strike with the A/P to debt swap.. Becuase you also demand warrants in case they pull it out of the flat spin... You can't get that kind of leverage with a company that has a bank account full of cash. You need leverage to protect your investment. That is what GM did... They leveraged their way into the conversion, and got some warrants for their trouble. So GM doesn't really care if the common survives... As long as they end up being a creditor in court. I get the idea you don't understand anything about these issues. You're right.. Of course I don't... o you have the slightest understanding of financial statements or the way finance is done? It seems like you come here with no understanding of this particular business, but instead, basing your expectations on other businesses that you apparently have had bad experiences with (if you've had bad experiences with them, perhaps you should have learned something -- LIKE DO YOUR HOMEWORK INSTEAD OF GUESSING WHAT THE HELL IS GOING ON!). Uhhh!! LOL!! Yeah! OK.. Sounds Good!! I guess this thread is not a "No Clown Zone"??? "Clueless. The period required to recover these costs is a function of what the costs are and how many subs you get." OK,,, If you say so... You're management states in the 10-K that CPGA in 2002 was averaged at $430. Given a 14% cost of capital.. And a ARPU of $10.00 (I am being nice here) per month. How many months does it take to recapture your CPGA and pay the interest on the Cost of Capital along the way??? Well, make it easy and pretend that your Cost of Capital is ZERO! At $430 CPGA (from the 10-K) would take 43 months to recapture at an ARPU of $10. I believe most people would consider 43 months as YEARS??? NO?? But, again, that does not include your Cost of Capital... You continue to come here trying to post with authority but you clearly have very limited knowledge of the subject. Sorry if you consider "basic math" as very limited knowledge.. Just because you do not like the results of the math doesn't mean you should use ALL CAPS! IMO.. Regards, PCSTEL