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SBC Communications Inc. (SBC) Message Board

  • born_in_da_up_eh born_in_da_up_eh Jun 7, 2002 12:19 AM Flag

    WCOM debt, revenue, and cash flow

    After the $5.0B credit line is finalized, these 3 things are going to be the center of discussion. Maybe a little bit of SEC, but nothing will come of that and that too will start to faaaaaddddeeeeeeeeee away.

    I'm looking forward to stimulating debate concerning debt, revenue, and cash flow. I think the asset sales will take out $1.0B of the debt. The $1.0B will probably go toward the $1.0B remarketable bonds in January 2003. Revenue will probably come it at $31.0B for 2002 and the same in 2003. Cash flow will probably be $1.5B in 2002 and $2.0B in 2003. By the end of 2003, debt will have dropped from $30B to $25.5B and the company will be looking pretty sexy to a line wholesaling company like VZ, SBC, or BLS.

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    • >I'm looking forward to stimulating debate

      How about discussing WCOM debt, revenue, and the color of their CEO's socks on the WCOM board and NOT HERE!!!!!

      SBC investors per se just DON'T CARE.

    • By cash flow, you mean to have said Free Cash Flow.

      WCOM has way over 6.3 Billion in cash flow each year. From that they have been spending about 5 Billion a year on CAPEX because of their aggressive upgrade program that they have in progress. If they want to buy back debt, all they have to do is cut back in CAPEX.

      Maintenance CAPEX is 1.8 Billion a year, so theoretically, WCOM could have 4.5 Billion in Free Cash Flow next year. They potentially have more free cash flow than any of the other telephone companies.

      The Merrill Lynch analyst who said that WCOM could go bankrupt in two years was calculating that all of WCOM's capex was maintenance and did not bother to ask if any of it was discretionary. What fools these analysts be!

      Or, how corrupt are they?


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