Jestocost
The Poodle Bites.
join:2000-10-19
Saint Louis, MO
| reply to mdntblu
Re: Telocity?
NBC, NBCi and affiliated companies invested about $70 million in cash and advertising (TV and online) for a 20 percent stake in Telocity. At today's prices, that stake is worth about $32 million. Absent anything that we don't know about, I'd find it difficult to believe that NBC would pour any more cash into the company. |
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mdntblu
join:1999-09-30
Corona, CA | reply to justin
Isn't Telocity backed by NBC? Shouldn't that help? |
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Jestocost
The Poodle Bites.
join:2000-10-19
Saint Louis, MO
| reply to justin
Yep. With $75MM cash on hand and a loss of $38MM in the most recent quarter, it doesn't take much to figure out that there's potential trouble on the horizon. Salomon Smith Barney cited concerns over Telocity's viability in the downgrade on Rhythms that they issued Monday. According to SSB, Telocity and Flashcom account for 33 percent of Rhythms installed lines and 40 percent of their 3Q00 new lines. |
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justin
Australian
join:1999-05-28
Brooklyn, NY
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| reply to jydub
I remembered Telocity last night and added it this morning. Indeed, their cash-out date looks uncomfortably close. I can't imagine anyone getting fresh funding then. They would have to merge/be acquired/sell out or do something else drastic to continue.
Thats just my opinion from looking at the 10-Q though, as they say on the financial boards, do your own DD. |
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