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: Alejandro who wrote (5685)	5/3/1998 8:02:00 PM
From: James Fink	Respond to of 12468

<<I understand that negative cashflow and bad fundamentals etc do affect the stock price but when you sell higher than where you bought, that is marketplace profit. That is coming out of the pocket of the one who bought my shares at the higher price.>> TRANSLATION: I am counting on the "greater fool" theory to bail me out of my WinStar investment.

To: Alejandro who wrote (5685)	5/3/1998 8:06:00 PM
From: silicon warrior	Read Replies (1) \| Respond to of 12468

I don't agree with Jason.Say the company has 2billion of debt, payable over 15 years, which, with interest, amounts to 4billion. That only means that over a 15v year period the debtholders have first call on the 4billion, not that they have a call on the first 4 billion. Look, it's simple. Any earnings in excess of debt service requirements---i.e., the payment then due,is free cash to the shareholders. Of course, management will likely reinvest earnings, but it's surely not due to the debtholders. I don't understand why anyone would say debt must be fully repaid before there are earnings.