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Technology Stocks : Able Telecom (ABTE) -- Ignore unavailable to you. Want to Upgrade?

To: MangoBoy who wrote (474)	2/16/1999 5:51:00 PM
From: david james	Respond to of 700

Looks like they are saying there are 11.25 mill shares outstanding. So there haven't been a lot of shares added. But I suspect that all these negotiations regarding the debs etc have made it difficult for the auditors to interpret the appropriate number of outstanding shares that should be applied in the earnings/share equation. I doubt we will see any changes due to the calculated income, but the income/share may well change by some small amount, and in theory could be revised upwards if the debs are taken out. Of course, that would have no effect on overall cash flow. And the Interfiducia group would certainly be helpful in cleaning up the messy way they financed the MFSNT acquisition and would likely improve their chances of getting more substantial loans to handle the cash flow they need for these big contracts. With the demand for fiber and the demand for companies laying cable, Able should in theory be capable of obtaining contracts with good margins. With $100 mill+ in revenues a quarter, the company should be able to turn a decent profit in this industry. David

To: MangoBoy who wrote (474)	2/16/1999 6:20:00 PM
From: david james	Respond to of 700

Still trying to figure out this "non-cash" charge. It seems it has to do with the rights the Preferred holders have to convert, but its not clear to me whether these charges might be removed if their preferred stock is bought out and replaced with a more straightforward loan. Found this interesting from the S-1 As part of the MFSNT Acquisition and pursuant to the WorldCom Master Services Agreement, the Company has agreed to provide telecommunication infrastructure services to WorldCom Network on a cost-plus 12% basis for a minimum of $40 million per year, and the aggregate sum payable to the Company for the five-year contract is guaranteed to be no less than $325.0 million, subject to certain adjustments if we default on the WorldCom Note. To achieve these established minimums, WorldCom Network has agreed to award the Company at least 75% of all of WorldCom Network's outside plant work related to its local network projects up to $500 million and the Company has agreed to accept and perform work orders from WorldCom Network for as much as $130 million of services during each year of the five-year contract. The Company has also agreed that WorldCom Network will have met all of its commitments to the Company, to the extent that payments made to the Company reach an aggregate of $500 million at any time during the five-year term of the contract. BACKLOG As of July 31, 1998, backlog was approximately $1.2 billion, approximately 30% of which was attributable to WorldCom Network. We expect to complete approximately 40% of this backlog within the next fiscal year. As of January 29, 1998, our backlog was approximately $159 million.