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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: Steven Bowen who wrote (4902)	4/2/1998 10:44:00 AM
From: TheSlowLane	Read Replies (1) \| Respond to of 12468

I'll be interested to hear SteveG's take, but my guess at the financing deal is this: they need a big pile of cash on hand. We do sales/leaseback on a bunch of things to manage cash flow. This looks like another 42 million that can be added to the warchest. I wonder what the switches will actually end up costing them after they sell off the other two. Has to be way less than what it would have cost to build them from scratch.

To: Steven Bowen who wrote (4902)	4/2/1998 11:17:00 AM
From: SteveG	Read Replies (2) \| Respond to of 12468

<..Oh heaven help you if you're listening to me :-)..> You haven't done too poorly from what I've seen....(and you helped and CONTINUE to help me get a better WCII grip. TA!) <..I'd tend to listen to him. I think the tone of his messages hint at him knowing something we don't. Even if not, buying WinStar on any type of weakness has obviously been a good strategy, and I see no reason to believe that doesn't still hold true...> Which is of course, why I'm OK with buying. But who IS this Ric D? Do you by chance have some post references of his psychic prowess? <..One problem; if we're all trading options, whose going to drive the price of the stock up :-)?..> The option traders who sell us the options (that is, if they can't match the opposite side - just like stock) <..Question; do you buy and hold options for that big 20 to 1 payoff, or do trade them after any pop? What's your strategy with calls?..> Well, I bought these personally and have in strong mind to ROTH convert. I want to delay taxable events (ASSuming profits... <g>) until '99, so these are likely a hold. <..PS I like your Jan 99 45 leaps. Looks like a sure fire winner at only around 8. Good luck...> $53ish to break even by Jan 99 - think we'll make it? <..PSS Do you understand the financing announced?..> Kinda hazy. Is WCII leasing to BNY (were they the repossesion agent of the US One assetts?) 7 switches? So 14 total US One switches - did WCII previously own them all? I know they were going to sell some... 5 are already sold? 2 left to sell? 7 now leased to BNY? Here's the paragraph: "...The seven switches, which are the subject of this facility, were acquired in connection with WinStar's acquisition of 14 Lucent 5ESS-2000 telecommunications switches from US One Communications Corp. in October 1997. Of the remaining seven switches, five have been sold or are under contract for sale, for sales prices totaling $36 million. Two switches remain to be sold..." I'll try to get clarification. [And yes in advance on todays VMQAIs. Welcome to my fishbowl!.. <g>]