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: dougjn who wrote (8460)	10/5/1998 11:19:00 AM
From: Steven Bowen	Read Replies (1) \| Respond to of 12468

"My real question is, do they have the financial resources to survive without going back to the high yield markets for at least a year, perhaps 18 months?" Hi Doug, To quote from the recent Alex Brown report (since that's the one on top of the pile on my desk); "WinStar's war chest includes a $725M cash balance, which should fund operations for the next 12-18 months under the current buildout schedule." "Management believes it will establish an equipment facility with manufacturer of it's PMP radios. In total, the facility could cover as much as $200 million and account for two-thirds of WinStar's 1999 capital spending requireements. If WinStar is successful in this regard, the company would be fully funded for its initial 40-market roll out."

To: dougjn who wrote (8460)	10/5/1998 9:20:00 PM
From: Bernard Levy	Read Replies (2) \| Respond to of 12468

Doug: As indicated by SteveB, Winstar has enough cash to last 15 months-- a little more if they stretch their buildout. I am not sure the high yield bond market will be closed for more than 6 to 9 months. Everyone keeps mentioning deflation, but they forget that the remedies to deflation are well known: lower interest rates (to negative rates if needed), and have the Fed repurchase a large chunk of treasuries (in essence printing money). On the fiscal side, tax cuts or increased govt spending can also help. I do not believe the Fed will let a situation similar to 1929 emerge. I strongly believe that 6 months from now, the economic landscape will look a lot better. Best regards, Bernard Levy