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Technology Stocks : UCOMA UnitedGlobalCom -- Ignore unavailable to you. Want to Upgrade?

To: steve host who wrote (91)	2/7/1999 4:10:00 PM
From: jjs_ynot	Read Replies (3) \| Respond to of 489

I do not understand the Bid.com reference. I agree that the 2 to 1 ratio is a correct representation for implied value of UIHIA to UPC price assuming UIHIA could accomplish a tax-free distribution of UPC shares at the market. So the only area of contention is the treatment of the large debt load and large negative cash flow and large negative book value that UIHIA carries. Some (about 1/3 of this which is a reasonable proportion) will be distributed with UPC. I am suggesting that one needs to reduce the 2 to 1 computed value to account for the negatives associated with the debt load. yahoo.marketguide.com I prefer to buy stocks that have a debt-to-equity ratio of less than 0.5. Then I own the company as a stockholder not the banks as a lender. The higher debt implies a higher risk since UIHIA lost $457 million last year and only had $102. million in the bank. biz.yahoo.com More cash is coming via the IPO but cash is also flowing out (see negative cash flow). Thus there is a risk that needs to be discounted in the stock price vs. the value of UPC. PS I find no real value in the YAHOO boards and don't follow them.