Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Steven Bowen who wrote (4907)	4/2/1998 12:25:00 PM
From: SteveG	Read Replies (1) \| Respond to of 12468

<..The 7 WinStar wants to keep they sold to BNY for $42M, with some deal to lease them back from BNY...> This is SMART, IMO. 5ESSs are SOA for circuit switching, but I'm glad they leave open their options to upgrade to data switching boxes. <..So they paid $100M for 14 switches. Sold all 14 for $88M. And have a deal to lease the 7 they want...> I don't get this either. They bought these at bankruptcy prices and STILL couldn't make a profit or breakeven on resale? 'Supwidat?!? <..I'll take part of the credit for all your gains :-) (I don't want to hear it though if it moves down.)..> Don't go backing out of this now! <..50 more!!! Man, you're getting out of control...> And those are just what you KNOW about. Somebody STOP me! <..Now WinStar has to keep moving up or we'll have two crazies on our hands here...> I REFUSE to get emotionally involved with a stock and resort to mindless cheerleading and bear-story denial. WINSTAR $200!!! GO!!!

To: Steven Bowen who wrote (4907)	4/2/1998 1:44:00 PM
From: Harley Scott	Read Replies (1) \| Respond to of 12468

You said: >>It's not clear to me how they came out ahead in that deal (except in terms of time, which may be the most important consideration).<< I agree regarding the speed thing, but also it seems the question isn't whether they sold these assets for more than they paid. It's whether they paid in aggregate less than they would have by building 7 switching centers from scratch. Does anybody know the answer to this? There's probably also a 1Q tax-loss angle. Separately, it's been pointed out that WCII execs seem hungry for all the cash they can get their hands on. After buying the assets of both US One and MidCom out of bankruptcy, maybe they've decided that you should raise all the cash you can while the markets are willing to give it to you. Just guessing . . .