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

To: Bernard Levy who wrote (5692)	5/3/1998 11:13:00 PM
From: Jason Cogan	Respond to of 12468

Bernard: <<I am amazed that we are having this discussion, but a company can owe money and still distribute dividends.>> I too am amazed we are having this discussion. I'm not saying a company can't owe money and distribute dividends. As Jim Fink seemed to understand, I also am not advocating that Winstar distribute dividends. Since I can't seem to explain it to Steven, no matter how hard I try, please try for me. He seems to listen to you. Explain to Steven that the reason why Winstar equity has risen is because investors are betting on future cash flow. Explain to Steven that if that future cash flow doesn't materialize, nobody, not even the bondholders will get paid. And explain to Steven that if only some of that cash flow materializes, the bondholders will have first claim to it. Regards, JC