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: James Fink who wrote (5691)	5/3/1998 9:35:00 PM
From: Bernard Levy	Read Replies (1) \| Respond to of 12468

Dear Jim and Jason: I am amazed that we are having this discussion, but a company can owe money and still distribute dividends. Case in point: IBM. Big Blue is unbelievably brilliant at borrowing money at low rates-- yet it distributes dividends. Concerning cash flow: it has to be large enough to cover interest, taxes and other company obligations. After that the company can do whatever it wants with it, including distributing dividends. Naturally, most loans are secured, and a company could not sell all its assets, distribute them as ''dividends,'' and then tell the lenders ''we are sorry.'' Best wishes, Bernard Levy