Kris Tuttle

What's Causing the Uncertainty Around XO Communications?

Maybe Icahn is happy to collect the interest on the debt and not have to worry about it being refinanced. It could also be that until XO gets some product traction that shows consistent revenue growth the equity holders don't care and have to wait. Better to hold bonds and get the interest during that time.

The company does seem a bit undervalued at the current level. Seems to be worth $4-5/share at least which is decent upside from $3.20. I haven't looked at the structure in detail to know whether Icahn has put in special measures that would preclude fair value on the equity in the market.