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 : WCOM -- Ignore unavailable to you. Want to Upgrade?

To: Lynn who wrote (2933)	7/18/1998 9:20:00 AM
From: Teddy	Read Replies (1) \| Respond to of 11568

That article is one of tools famous short seller Asensio is using to drive down shares of ABTE. WorldCom sucked ABTE into a bad deal. It is pretty much a non event for MCIC/ WCOM shareholders, maybe slightly positive for us: we unloaded a poor performing subsidiary. From Thursday's story: biz.yahoo.com "...Investors may be buying Able Telcom Holding Corp. (Nasdaq: ABTE - news) shares believing that its recently acquired NIFS Network Technologies, Inc. subsidiary (''NT'') possesses some value significantly in excess of Able's purchase cost. There is no reasonable or factual basis to support this belief. In fact, the opposite is true. NT owns unprofitable operations in a capital intensive, low margin, highly competitive construction contract business. NT possesses no valuable proprietary product or technology. After failing to find a more suitable buyer for NT, WorldCom Inc. (Nasdaq: WCOM - news) agreed to sell NT to Able for just $10 million in excess of its book value. Despite the low purchase price, Able failed to obtain the funds necessary for closing. Finally, Able bought NT for a small cash payment of approximately 15% of the purchase price and a note for the balance. WorldCom's willingness to risk handing over control of NT's assets and customers despite Able's lack of funding clearly demonstrates the seller's strong interest in removing NT's losses and obligations from its books and the lack of interested buyers even at the low offering price..."