Wt Eh Com Gbp A Discussion Threads

[pugugly] 26/6/2002 18:06

Surely the title should read Enron . Worldcom> WHO ARE NEXT!!!!!. I have a horrible feeling that there are a lot more out there in addition to those who some might claim could be on a potential short list such as possibly Vivendi and Deutche Telecom. Any thoughts?

The worry is that if there are too many total confidence may collapse and the market fall substantially further.

[davejb] 26/6/2002 17:45

Scripophilist,
in the climate then operating, don't you think it was excessively scrupulous to refuse to sell her the company, just because there wasn't one?

[wildrover] 26/6/2002 17:21

--Scripophilist

don't you just love it when a woman talks dirty to you like that ;-))

PS Did you manage to see her off for a vastly inflated sum.

Cheers

WR

[jonc] 26/6/2002 14:55

So much for audit regulation.

When it was introduced to the UK the emphasis for many switched from actually carrying out an audit to filling and ticking the boxes in the compliance manual.

I knew then that it would not work and how so.

JC

[morgs] 26/6/2002 14:47

Don't you just love brokers CSFB have reduced their long term price target to $0.
Now thats what I call erring on the side of caution.

[tromso] 26/6/2002 14:15

LOL Kayak. Just typical of the US.

On Bloomberg they were saying that WorldCom has more liabilities than Enron ...
(so over USD 30 billion)

I don't think the Internet network will go bust though, as the network assets will be producing cash, so someone will want them as long they aren't saddled with all the debt. Even the Iridium satellite network is still being used (US Navy initially kept it going for their 2,000 satellite phones). It poses more of a problem for financing future investments in Internet infrastructure upgrades - it's got to reduce the number of competitors in this market.

[kayak] 26/6/2002 13:39

Just got this email if anyone's interested :-)

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[tromso] 26/6/2002 13:24

My only suprise is that since WorldCom was already under investigation for so long, why didn't this news come out of the woodwork sooner ?

[bpoole] 26/6/2002 13:24

This must is good news for cw. They must take some of their business?

[jl202] 26/6/2002 13:21

Andersen Consulting was spawned off as Accenture some years ago and seems to have survived the mess,,

[jl202] 26/6/2002 13:20

ChaosT, Andersen US is obligated by US law to withdraw from the business of auditing publicly listed companies owing to the fact that it has been served an order by the SEC. This violates all its business immediately. Andersen no longer exists! No idea whether there was any stock, as it was a Partnership probably all "privately" held,,

[jl202] 26/6/2002 13:18

Martini, Where is it possible to get hold of a list of Andersen Clients? Put a ring round the conglomerates and the aggressive takerover specialists of the last 5 years and Presto!

My uncle was Director of xxx at MCI at the time of the failed merger with BT. Worldcom came out of the blue, a sign of the funny money that was ratchetting up at the time (circa 1998?) I can't see the difference between that and Drexel in the late 80s. Worldcom obviously paid with Junk, which at the time was not the case with BT. 90s, decade after the junk bond scandal we have the "junk stock" scandal,, General Electric next??

dyor

[adriand] 26/6/2002 13:18

Another Anderson (Hans) fairy tale.

How long and who else has the virus.

At this rate BT will be the only telecom left in business.

[chaost] 26/6/2002 13:15

Surely this has to be the end of Anderson.

I am sure Accountants need to have a very important form of insurance - kinda like Haulage companies have for lorries - you don't have - you don't trade. If this is the case - who is likley to insure them now? And what about thier license to act as Auditors?

Is Anderson Consulting still linked to the Accounting arm? is it listed? If so, short of the century coming up methinks....

[magic] 26/6/2002 12:56

Its official.
7:52 [WCOM] WorldCom confirms it will restate results for 01, Q1 02

[pmeas] 26/6/2002 12:32

Bring um on.

[technet] 26/6/2002 12:26

Anyone want to buy Pipex?

[deltablues] 26/6/2002 11:58

My thoughts too scrip - I was working for BT at the the time of the failed MCI bid, so I had a look at WorldComm and quickly concluded it was a house of cards. When I heard it on the radio this morning in my half-awake state, I actually thought it was an old story being rehashed.

A couple of years ago Bernie Ebbers lost $45 million buying WCOM stock on margin and they "lent" him the money at 0.5% interest with no payback date so he wouldn't have to be declared bankrupt (figures from memory). Says it all, really.

One of the main purposes of recessions and bear markets is to re-distribute capital away from over-speculative rubbish and towards sound businesses that can make profitable use of it. If this has contributed to that process, then it has to be positive in the long term.

[technet] 26/6/2002 10:50

An interesting thought here .... if people were worried about the Internet dying because of KPN Qwest going under .... WorldCom own UUNet which controls 80% of the world's Internet infrastructure!

[bpoole] 26/6/2002 08:28

What will you be buying scrip? I am still buying AWG on dips but they don't
dip much.

[scripophilist] 26/6/2002 08:08

The average capex has been 36% of turnover over the last five years while depreciation was only 13%, a ratio of nearly three fold. At worst a financial policy that creates this should be classified as not very prudent at best!! The BROE was negative as well, so never a company I would have trusted. I think I have mentioned this before on other threads.

I would never ever have invested in WCOM at any time. It stank to high heaven.

Absolutely no surpise to me.

The market will no doubt punish others out there today with much better policys so I will be BUYING in the market today.

[energyi] 26/6/2002 07:32

WCOM.E 0.20 -0.63 0.83

Makes BT look well-managed by comparison

[boyse] 26/6/2002 07:09

FUTS off -224 and falling

IG sees FTSE 4484 or below