Charlie Bottle

Capitally Challenged Stocks That Could Be Diluted or Extinguished

Good artcile. SBC Communications is a powder kegg, it has been around for 10 years and is yet to produce a profit. Very risky stock and extremly overvalued (earnings would need to grow at vey fast rates to justify current valuation that has not really happened in the past and will not happen now for sure - any growth is capital intensive and capital is much more expensive). Substancial debt coming due in 2010 will require a lot of dillutive capital to get the capital structure back to any level of reasonableness. Take a look at my article.

seekingalpha.com/artic...