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Agree Steve - their picture has looked dim for some time<br>
<br>
Lets See<br>
<br>
Qwest purchased US West for around = $ 45 Billion to add to there fiber<br>
<br>
Today Value is as you say Market $8 Billion / Price $12 Billion with
the Post quoting $20 Billion ( they may be looking at other assets )
but there is no doubt its declining and so is revenue<br>
<br>
BUT Long short term debt figures I am looking at say $17 Billion
without mentioning pension liability underfunding<br>
<br>
All those enforced subsidy deals in NM will come to a grinding halt and
independent ILECs will have a rough time financially especially with
scarce financing with business plans that require heavy subsidies to
operate<br>
<br>
The biggest losers besides the citizens of NM will be the polls in SF
when the lobbyists who shower them with cash disappear<br>
<br>
Implosion is obviously imminent and maybe its time to revive the Pony
Express fro job creation<br>
<br>
( : ( : pete<br>
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<p class="p1">--------------------------------------</p>
<p class="p1">Peter Baston</p>
<p class="p1">IDEAS business technology integration</p>
<p class="p2"><span class="s1"><a href="http://www.ideapete.com/">www.ideapete.com</a></span></p>
<p class="p1">Cell: 505-690-3627</p>
<p class="p2"><span class="s1"><a href="Mailto:pete@ideapete.com">Mailto:pete@ideapete.com</a></span></p>
<p class="p3"><br>
</p>
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<br>
<br>
Steve Ross wrote:
<blockquote
cite="mid:203e4cf71002071020i3648d47en63efa6b4f3e7127@mail.gmail.com"
type="cite">The market valuation is $8 billion, which would suggest a
price of $12 billion, but the Denver Post says it's worth $20 billion
at $1500 a line plus some other businesses.
<div><br>
</div>
<div>In other words, the stock is undervalued due to poor management,
which would suggest that it can be had. But the long-term debt is a bit
frightening in this day and age. Smaller buyers would be unable to
retire the debt and improve service, even at a buyout that gave
shareholders a 50% premium over the current stock price.</div>
<div><br>
</div>
<div>Qwest had been selling off very rural areas (and creating about
1,000 small ILECs in the process) until three years ago. That could
resume if potential buyers could fine financing. The very rural areas
can get going-forward capital loans from RUS and operating funds from
USF. But it is a bit too late for Stimulus money -- the final NOFA is
already on the table -- and ESF is due for an overhaul. So that is
dicey as well.</div>
<div><br>
</div>
<div>-- <br>
Steve Ross<br>
201-456-5933 mobile<br>
781-284-8810 landline<br>
707-WOW-SSR3 (707-969-7773) Google Voice<br>
editorsteve (Facebook)<br>
editorsteve1 (Twitter)<br>
<a moz-do-not-send="true" href="mailto:editorsteve@gmail.com">editorsteve@gmail.com</a><br>
<br>
<div class="gmail_quote">On Sun, Feb 7, 2010 at 12:39 PM, pete baston
<span dir="ltr"><<a moz-do-not-send="true"
href="mailto:pete@ideapete.com">pete@ideapete.com</a>></span> wrote:<br>
<blockquote class="gmail_quote"
style="border-left: 1px solid rgb(204, 204, 204); margin: 0pt 0pt 0pt 0.8ex; padding-left: 1ex;">
<div bgcolor="#ffffff" text="#000000"><a moz-do-not-send="true"
href="http://www.denverpost.com/ci_14346718" target="_blank">http://www.denverpost.com/ci_14346718</a><br>
<br>
<br>
<div>-- <br>
<p>--------------------------------------</p>
<p>Peter Baston</p>
<p>IDEAS business technology integration</p>
<p><span><a moz-do-not-send="true" href="http://www.ideapete.com/"
target="_blank">www.ideapete.com</a></span></p>
<p>Cell: 505-690-3627</p>
<p><span><a moz-do-not-send="true" href="Mailto:pete@ideapete.com"
target="_blank">Mailto:pete@ideapete.com</a></span></p>
<p><br>
</p>
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<br>
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