A little late to dump. The stock finishes at .83/share and then, goes out at .20/shares on "Island". I've not heard the 7.5 billion but, the news today said 4 billion worth of unexplained expenses and they have restated 2001 earnings and the 1st qt of 02. The CFO resigned today amid the disclosures.
Agreed keepmine. 'Dump your stock' is irresponsible advice after you have identified yourself as a CFP Butch. I understand how you probably meant that statement but you should know better. WCOM shares may end up worthless but if anyone still holds them I would advise you to speak to your own financial advisor before making a decision to sell. There are other options that may be better for you at this point.
From what I read in the NY Times, Washington Post, the government did not do the uncovering. It was durning an internal audit brought on by the new CEO. According to what I read, the figure is about $3.5 billion, give or take. As far as dumping the stock, if you are concerned about price movement, you should have been out of MCI/Worldcom a long time ago. But negative news such as this can have a positive effect. naturally the price will bottom out then start the path upward once again. If you like the company, stock, or what ever else would move you to buy the stock, now could be a good time to buy if you can stomach it. Just my humble opinion, one should consult with a more knowledgable person on such matters, of course YMMV.
Yep I was going by the Fox News report. They got it all wrong lol. Sometimes the news media embellish their story, imagine that. An INTERNAL audit uncovers about 3.5 bill in hidden liability. Finally hit Drudge at <http://www.drudgereport.com> Actually - it may be a good idea to hold. If they declare bankruptcy, which we anticipate you may be entitled to a settlement worth more than the poultry $.20 per share now.
Stock holders are usually close to the bottom of the financial ladder when it comes to settlements. While one may be offered, it looks more like they will prep the company for sale to someone else. Worldcomm does have a lot of infrastructure which I'm sure is saleable. Hell, I'll give them a million and a half for the whole company. Then I'll restructure the entire thing to be a lean mean operation. I know the telecomm industry is taking a beating, but I bet we'll all be suprised when they file bankruptcy (again? Didn't they already do that?), restructure and move into a different industry. That is of course if they aren't bought out first and at .20 a share, someone might be waiting in the shadows to get the best deal possible.
For the most part you're right Darkdoj. For those who have preferred stock they are FAR from the bottom. That's why they call it preferred. The implications on this one are huge. I'm concerned that this stuff is adversely affecting the entire economic recovery. This will hurt efforts of many on here trying to get/stay caught up and resolve credit issues. http://www.washingtonpost.com/wp-dyn/articles/A44973-2002Jun25.html A major accounting firm convicted of obstructing justice. A leading brokerage caught misleading its clients. Imperious chief executives falling like flies. Huge corporations tumbling into bank- ruptcy. Business pages that read like the crime blotter. Now, according to economists and market analysts, this still-unfolding corporate and accounting scandal has begun to weigh heavily on the stock market, the dollar and the U.S. economy. And the effects are likely to linger at least through the end of the year. I do agree that it's more likely the co. will survive in one form or another. Maybe they will become a CRA.
I've been out of the market for awhile now. Just found out that one of my compaies Citrix (CTXS) dropped 42%, but there is no news on them yet. Poss. the fallout from Worldcom. One of Worldcom's biggest assests is it's Internet pipeline. It's one of the MAJOR BIG BOYS whenit comes to intenet infrastructure. My ISP has them as their backbone provider. I find it totally amazing the crap these folks think they can get away with.
I guess this explains why my fone bill has all of sudden been jacked up within the last 5 months. LOL!!!!
Put it this way, without telling you WHO I work for (no not Worldcomm or any teleco for that matter) We spend 3.5 Million a year for 5 OC-48, 3 ATM, and 85 T-1 lines. I work for someone special who needs all this capacity to do stuff with. That's alot of moola, and majority of it goes to Worldcomm.
CNBC broke the story last night at about 6:15 PM EST. It's to late to sell this looser. It should have been sold two years ago. Are there still people that believe that you should bye and hold no mater what, out there? Here is a post I made in the general lounge on this story. http://consumers.creditnet.com/straighttalk/board/showthread.php?s=&pgnum=1&postid=197451#post197451
I agree. There are more Telecom companies that are going to be affected by the same type of accounting fraud. Also, Martha Stewart is in real trouble. See stories in the LA times on Stewart: http://www.latimes.com/business/la-000044355jun25.story http://www.latimes.com/news/local/la-000044702jun26.story I think she may be going to jail. The arrogance of some of these CEO's just amazes me. Cutting cabbage with a 6 inch knife and blowing the charges if insider trading off did not look like good PR to me.
As usual, the news reports dwell on the stock market losses, and the multi- millionaire ceo's. How about the 17,000 layoffs? How about the now worthless employee pension accounts?
You bet. I herd that one forth of the 17,000 layoffs wile be announced this Friday. That's another 4250 jobs lost right now.
I too, work for a company with similar needs. I have been trying to reach our rep. at Worldcom and so far they are not returning my call. We are trying to find a backup provider now. It's a MAJOR headache I don't need right now. Things are going to get real interesting.
