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

To: Alejandro who wrote (8714)	10/16/1998 12:44:00 AM
From: Bernard Levy	Read Replies (2) \| Respond to of 12468

Hi Ali: If something was seriously wrong about Winstar, what do you think would be the chances that no one on this thread (or on the Yahoo thread) would have heard about it? I do not think that what affects Winstar the stock relates to the fundamentals of Winstar the company. The problem probably has to do with the existence of the convertibles, and there are probably sophisticated strategies that involve going long the bonds while shorting the stock. I do not know what the current yield is on the bonds, but I imagine it could be as high as 25% right now. I noticed that GSTX has also some convertibles for which, like Winstar, Morgan Stanley was an underwriter. GSTX seems to trade in a manner very similar to Winstar-- it was down today. On top of it, Morgan Stanley just downgraded GSTX today (Stephanie Comfort handiwork?) I think that what we see reflects the trading strategies of the pros, not the business fundamentals of Winstar. We need to remain patient until bond spreads start narrowing again. Best regards, Bernard Levy

To: Alejandro who wrote (8714)	10/16/1998 1:50:00 AM
From: SnowShredder	Respond to of 12468

Ali, I think that you should take the market in your account...let's say the market doesn't crash and stays in a trading range for almost a year or crashes 6 months from now...and WCII needs $$$ before the end of next year, but the market isn't ripe for financing...what do they do then? If so then AG decreasing rates might not of been a good event for WCII (great for gold)...because he might just be delaying the market correction. The rate decrease was unexpected and very unlike Greenspan, he must have found some deep doo doo that needed immediate attention. I read on another thread that Europeon banks have greater exposure in Latin America than US banks...if that is the case then by no means are we out of the woods. I for one hope that the market bounces to the moon from here...then it will take WCII with it. But I'm not going to bet on it just yet...but gold on the other hand, well, that's a different story. Best of Luck, Where'd He Go?

To: Alejandro who wrote (8714)	10/16/1998 7:25:00 AM
From: limtex	Respond to of 12468

Ali - I agree with the focus on the company and it is focusing on the company with nothing else in sight except a clear run to positive EBITDA late next year that makes one wonder WCII is in the tank. There is no business reason that anyone on this thread can think of that should have affected the stock price so badly. * The management is great. * All the reports we get on this thread from customers are that the service and customer care is great. * The business plan is being progressed on schedule. * The industry is attracting a great deal more good attention every month as people begin to realize how much more businesses and homes are all going to need a lot more bandwidth. * Running out of cash is either very improbable or alternatively not an issue. So whatever is affacting it isn't the business. On the other hand we have recently seen there is some deal that hedge funds do witjh companies that have bonds in issue. We also know that there are a bunch of shorts out there who have recently gorged themselves. It is also clear that WCII has got the finacial equivalent of the plague as far as funds or institutions are concerened.We have to face facts and that is that WCII, our baby, is today considered the ugliest baby on the block. Clearly there is at the moment no institutional buying. The reason for that quite separately might be that the financial community just got bored with a series of rumours that turned out to be duds. So we know of three possible scenoiarios which may not be exclusive:- 1. Something wrong with the company 2. Determined short(s) 3. Hedge fund complications Of these the balance of logic is that 1. can be eliminated. That leaves 2. or 3. or a combination of both. And they could only get away with it provided you don't have strong institutional support for the stock. Well as I say above we have no institutional support right now so ....down we go. BUT it will turn on a dime one day in 1999 nad turn big at that. So whats the worry. It seems to me that if the recovery is sustained and you want a piece of it then just get a portfolio of the usual suspects, CSCO, MSFT, IBM, DELL, AOL, LU, WMT etc. They will get you home first and WCII will bring the gravy next year. Or if you really want to push the boat out buy a whole bunch more of WCII and wait. WCII is on track and has no foreign exposure and can make all of us very happy just buy trading in th US to bunsinesses that need to save money !!!! Best of luck and great to hear from you as ever, L