Forum Archive Index - December 2001

["Viewpoint ." <viewpoint_@hotmail.com>]

Greg - I agree with you that entry and exit prices are important factors. 
Great to see you got in so 'cheap' at 430 - but does that make 500 a price 
you have to barking mad not to take advantage of.

Your other point was 'that Telecom also has a tremendously large base of 
cash paying customers ,a factor which is always going to help them through 
tough times.'

But aren't you worried that while Telecom has increased its debt from $2.2B 
odd in 1999 to a current level of $5.7B their operating cash flows (as well 
as earnings) are now lower than they were before the new borrowings and 
acquisitions? That is the main reason why the current share price is lower 
than it was back in 1999

So how cheap is cheap?

I don't know but in my view when liabiities are about the same as assets 
(excluding the intangibles) and operating cash flows and returns are 
declining things don't look all that good.

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