Any bets where they will bottom out at? Lets see if they can beat Adelphia
at $0.05 on 6/21/02
Worldcom stands a chance of making money in the future, Adelphia has absolutely NO chance of ever regaining any sort of respectability.
After all Wcom owns UUnet...they own the fat pipes..
Adelphia cries when it has to purchase a few T3's cause their cablemodem system is clogged...
Worldcom stands a chance of making money in the future, Adelphia has
absolutely NO chance of ever regaining any sort of respectability.After all Wcom owns UUnet...they own the fat pipes..
Adelphia cries when it has to purchase a few T3's cause their cablemodem
system is clogged...
The odds are that by 8am WCOM will be halted. It will become WCOME when the
halt is done (if halt is done). By 1 month from now WCOM will be WCOMQ
trading on pinksheets.
Remember, this is just the beginning. Do you remember you WCOM bills for
services that you had canceled years ago? That will come out as well...
Alex
I am pretty sure a 5 quarter restatement will reduce its chances of future
respectability.
DJ
Unfortunately this event will not only affect Worldcom, but the entire industry in a significant way. This is, afterall, one of the largest reported cases of fraud in US history.
MP
Remember, this is just the beginning. Do you remember you WCOM bills for
> services that you had canceled years ago? That will come out as well...
Heh, just today, I received a bill from WorldCom for $75,097.30, for
nothing in particular, that I can discern, which they claim to have been
the unpaid accumulation of some monthly service from May, 1999 through the
present. Um, yeah, right. 
-Bill
I have a $132,000 bill for an $4k/mon oc3 that was installed less than a
year ago.
I have a $77,000 bill for UUNet bandwidth -- one months billing, according
to them -- for a 9meg ds3.
http://www.msnbc.com/news/772357.asp?0cm=c20
Replying to my own post, Adelphia filed tonight. Must be safe to come up
for air since someone has now made a bigger mess in their pants.
Accoriding to Reuters:
-- WorldCom sees $2 billion a year in cash savings.
-- WorldCom will lay off 17,000 workers starting Friday, which will save
about $900 million annually.
-- WorldCom will sell off non-core businesses, including South American
assets, and its wireless resale business, which will save $700 million
annually;
-- WorldCom will save about $375 million annually by paying some preferred
dividends in common stock, not cash, deferring some dividends, and
discontinuing the dividend on the its MCI tracking stock.
-- WorldCom will also cut capital expenditures in 2002 and forecasts 2003
capital investment at $2.1 billion.
The usual stock sites have the releases. Ironically, Anderson stated
tonight their work complied with accounting standards.
Wonder where the 17,000 souls are going to come from?
Indeed it will...but they will survive..
We are owed about $24,000 from UUNET for about 16 months now.. So far, quite
a few people in the various departments seems to disappear after they
realize an actual refund is necessary to resolve the problem, and no, we
aren't a customer.
Deepak Jain
AiNET
They'll have to find a bank to loan them some money (~$5 Billion) before
they can stay around long enough to achieve those savings. They were having
a hard enough time when they said they had $7+ B in EBITDA. Now I doubt they
will see their $1B in Free Cash Flow that they were claiming they'd have if
they "deferred" the interest payment on their preferreds.
I don't see how deferring payments that are due is effective cash
management.
The upside, and the operational piece is that judging by all the
insolvencies upto now have done little to effect existing services that are
in place.
Deepak Jain
AiNET
Eric Germann
Prediction:
Bankruptcy filing to lose the restated 5 quarters, followed by
emergence and prosperity. <sarcasm> After all, isn't the saving of
fraudulent transactions made by suffering telecoms the whole "prupose" of
today's bankruptcy courts? </sarcasm>
Operationally, I believe the biggest impact will be indirect: losing
17K+ bodies will not make WC an easy giant to work with 
Heh, just today, I received a bill from WorldCom for $75,097.30, for
nothing in particular, that I can discern, which they claim to have been
the unpaid accumulation of some monthly service from May, 1999 through the
present. Um, yeah, right.
We have a similiar one, which as close that we can tell is seperate
billing for colo also charged and paid as part of another invoice.
It adds up to 30k+ and goes back 3 years.
And Just think,
The perpetrator of this fraud was the guiding light
for the American Internet fair peering practices policy.
Imagine that.
Now, someone explain how an internet provider convinced congress that
it didn't really have to carry an -internet customers- packet from one
side of its -=own=- network to the other side, unless -=both=-
parties paid it money ?
With the recent rash of chapter 11's and 13's perhaps we should
be re-examining the peering practices in America...
It appears this "Ebbers Ethics" thing isn't working.
My .02c
<LURK LURK LURK - don't -=even=- ignore the markup>
Marc Pierrat wrote:
That's already being done. Of course, not in the way you seem to
suggest... Instead, you have increased depeering as everyone tries to
squeeze [non-existant] money out of everybody else.
Don't get me started on what C&W did to the Exodus backbone. It used to
be that from our servers to my cable modem at home, it was Exodus ->
Teleglobe -> Rogers. Now, after a massive round of depeering, it's
Exodus -> C&W -> Sprint -> Teleglobe -> Rogers. It's like that with
pretty much everything: you used to have some networks who peered
directly with Exodus, now traffic to them goes through C&W and UUnet
first, etc.
Vivien
Instead, you have increased depeering as everyone tries to
squeeze [non-existant] money out of everybody else.
some of the motivation is large players very consciously trying
to squeeze out smaller or competitive players in the chaos of
all the other noise.
randy
Date: Wed, 26 Jun 2002 11:29:05 -0400
From: Vivien M.
Don't get me started on what C&W did to the Exodus backbone.
It used to be that from our servers to my cable modem at
home, it was Exodus -> Teleglobe -> Rogers. Now, after a
massive round of depeering, it's Exodus -> C&W -> Sprint ->
Teleglobe -> Rogers. It's like that with pretty much
everything: you used to have some networks who peered
directly with Exodus, now traffic to them goes through C&W
and UUnet first, etc.
The question is how it affects the bottom line. I have a client
who used to colo at Exodus. After being quoted in excess of
$1500 to set up BGP (!), refusal to cross-connect, and seeing the
effects of the depeering, they bailed, and asked us to help build
a network the right way so that they can _compete_ with Exodus.
I doubt this is an isolated incident.
What goes around comes around. As much as I'll whine about the
stupidity of excessive depeering, my capitalist side loves it...
it's much easier to set up a network with routes far superior
than those who decide to force traffic the long way.
Don't whine. Take customers away. It's much more productive.
Eddy
This is at least the second purge of that many bodies, maybe third...they just let 20k go a month or so ago..
These business practices will continue, as long as the benefits of doing things this way outweigh the punishment for doing them. Ask Bill Gates...for example.
I'd venture a guess: In all these disclosures we've seen lately, Wcom, Global Crossing, Adelphia, Enron, ad nausium...NO ONE will go to jail...the taxpayer/stockholders will ultimately swallow it all.
Haven't we gone down this road before? Remember Junk bonds and Milikin (sp)? Savings and loan scandal? Greed is good..right... who paid the bills for those debacles? You and I.
IF you got a job, be thankful.. this isn't over yet.
The only stocks I'd buy right now, are in shredder manufacturers....