From Wall Street Journal Online:

http://online.wsj.com/article/0,,SB1025044139757626480,00.html?mod=home_whats_news_us

On Yahoo: http://biz.yahoo.com/rc/020625/tech_worldcom_share_1.html

This is from the wire service:

Reuters Company News
WorldCom shares sink fast after-hours after fraud report

NEW YORK, June 25 (Reuters) - Shares of WorldCom (NasdaqNM:WCOM - News) sank
like a rock in after-hours trade on Tuesday following a news report that the
beleaguered telecommunications giant has allegedly engaged in massive fraud
that may force it to file for bankruptcy.

WorlCom plunged to 36 cents a share on the Instinet system from a close of
83 cents on Nasdaq. David Faber, a correspondent for the CNBC financial
television network, quoted sources close to WorldCom as saying the company
has inflated earnings before interest, depreciation, taxes and amortization,
or EBIDTA, by about $3.6 billion, and will soon restate its financial
statements.

----------

What's next for Worldcom? Chapter 11?

Heh, I think if you looked hard enough you will find almost every public company has done the same thing in the past few years during the whole dot.com boom.

Now it's all coming down...

Invest in canned food and bullets.

Or this is all hipe and we should all go out and by stock in them at $0.36

:liplick:

Originally posted by Jason_Berresford
Or this is all hipe and we should all go out and by stock in them at $0.36

:liplick:

After you :D :D :D :D :D

MSNBC coverage: http://www.msnbc.com/news/772330.asp

A grim outlook for today on the market:

http://biz.yahoo.com/djus/020625/200206252340000918_1.html

First WorldCom, then AOL/Time Warner, then Bell, then the government - its all crashing down. :bawling:

I'm not sure I see all that happening, but hey, who would have thought in 1998 that we'd be seeing what we are today?

I wouldn't go so far as saying the government, but rest assured a major bank is on it's way out:(

From the Washington Post:

http://www.washingtonpost.com/wp-dyn/articles/A44367-2002Jun25.html

"In the past year, as telecommunication companies nationwide have crashed, investor faith ebbed in Ebbers's ability to guide the company out of debt. He resigned under pressure in April and was replaced by Sidgmore, the former UUNet chief, who promised to reduce debt, sell underperforming divisions, and cut costs dramatically. His plans included laying off 17,000 people. "

So...ummm....does like anyone need a network engineer :crying:

batter up: global crossing

Originally posted by uuallan
So...ummm....does like anyone need a network engineer :crying:

You should look into learning accounting. I think the world needs people who actually understand what side of the balance sheet does what.

It's funny how the name Arthur Andersen keeps coming up in stories like this.

Andersen was the largest. They weren't doing anything that any other accounting firm wasn't. I would bet money that every public firm has "cooked" their books in the past few years.

The market and economy is going to die a hard death, because it was built on perception, and now the perception has turned sour.

it's just a shame the economy will continue to go in the toilet, all these corporations will go bankrupt, CEOs will keep getting huge bonus and severernce payouts, thousands will be laid off.

and yet, the cost of living just seems to rise and rise and rise. hmmm.

Deflation has set in, I wouldn't worry about it so much, it will correct itself soon enough. Just think, MCI is the 2nd largest phone provider.

How many people on this board have MCI for their lines? Cell phones? Home phone? Long Distance?

Their going down will be fairly catastrophic for the economy as a whole. Instant increase of many of tens of thousands of laid off people.

Enough laid off people out there who have no hope, the more people that will find the rich and take their money by force....

Originally posted by bambenek
I would bet money that every public firm has "cooked" their books in the past few years.

No question about that. But companies like Andersen are hired to perform audits to make sure the "cooking" doesn't boil over into fraud. They either missed the obvious or took a little payola to go with the flow. The Andersen saga is far from over.

i think worldcom laid of 18,000 today?

Originally posted by skylab
i think worldcom laid of 18,000 today?

It is 17,000 and it is supposed to happen Friday.

aha, yeah, i thought i read 18,000 at cnn today. but, now they say 17,000 as well.


whew. that hurts.

the world's coming to an end!!!!!

:bawling: :bawling: :bawling: :bawling:

Originally posted by Roy@ENHOST
the world's coming to an end!!!!!

:bawling: :bawling: :bawling: :bawling:

No, the WorldCom's coming to an end :D.

Originally posted by skylab
it's just a shame the economy will continue to go in the toilet,

s/the economy/the US economy/

The US economy is running into problems at the moment (lead largely by an overvalued currency and a budget deficit), but the rest of the world isn't doing all that poorly. Europe is doing fairly well at the moment, and Canada's economy is very strong.

Usually when the US sneezes, the rest of the world catches a cold... this time round, it seems rather the reverse.

This whole trend of fraud is a friggin joke. How will UUNet be effected by all this?

I think the SEC has to get out their guns and go hunting, bring these doinks to justice and put em in jail. It's tiring to see these idiots walk away and have to, oh no, file bankruptcy for protection. Give me a break. I hope John Stossel does a cover on this soon.

BTW, the S&P is still about 50% over valued historically. And no, this isn't a new "internet" economy that actually supports these rediculous levels.

The RYVNX mutual fund is kicking ass in the wake of all this, it's good to know my retirement funds are still increasing while these criminals rape my country.

Heh, and people think Bill Gates is a bad guy? Ok.

I hope more of us don't end up like this guy.

http://std64.com/html.jpg

We're all gonna die.

Originally posted by DizixCom
I think the SEC has to get out their guns and go hunting, bring these doinks to justice and put em in jail. It's tiring to see these idiots walk away and have to, oh no, file bankruptcy for protection. Give me a break. I hope John Stossel does a cover on this soon.

BTW, the S&P is still about 50% over valued historically. And no, this isn't a new "internet" economy that actually supports these rediculous levels.The SEC should have been out there in full force during the run up in 98/99/ending in 2000.

No one wanted to listen. On Jan 1 2000 our financial site made public our warning that, historically speaking, all parabolic trends come to a crashing end.

In the first plummet of 2000 and subsequent bounce, most felt that was the worst it was ever going to get. Many bought more - buy the dip.

Yet signs were everwhere that things were not right. From the fundamental to the technical, you did not have to look hard to realize that a decline of many months or years was ahead, not just a few weeks.

Few wanted to listen. Otherwise astute investors bought. Mutual funds bought. We all know what happened since.

The entire, and I mean almost every last member, of the financial community sat back, privately but quietly voiced their concerns, and laid off risk on the public where they could.

Gone are the days when we were treated with TV ads of tow truck drivers buying an entire island with their market profits.

But people, every day people, bought this. They lapped it up. Many ordinary folks are just as guilty for participating in the con game.

I could go on, and on, and on, but won't.

Thank goodness ;)

Originally posted by bambenek
We're all gonna die. L O L !!!

Originally posted by cperciva


s/the economy/the US economy/

The US economy is running into problems at the moment (lead largely by an overvalued currency and a budget deficit), but the rest of the world isn't doing all that poorly. Europe is doing fairly well at the moment, and Canada's economy is very strong.

Usually when the US sneezes, the rest of the world catches a cold... this time round, it seems rather the reverse.

I always love outside analysis about our country from people who do not even live here. I assure you, our economy isn't doing "all that poorly". It is like comparing a millionaire to multiple middle-class families. Maybe there is a proportionately larger drop in the millionaires pocket then the middle-class, but that is just common sense. The more you have, the more you make. The reverse is also true. The more you have, the more you can lose.

You can only grow so much. Its economics. Did you really expect constant growth? To state our economy is "poor" is ridiculous. Stagnant? Maybe. People are spoiled from the last ~5 years. Also, you are comparing apples to oranges. Especially when you compare it to those countries you listed above.

I really do not feel like turning this into a post about who knows more and who can dig up more stats. You posted your opinion, I posted mine. I feel the word "poorly" was incorrectly used.

No, the WorldCom's coming to an end .

So where are you going Allan?

Originally posted by UmBillyCord

So where are you going Allan?

Absolutely no idea. But I know that a company that is cutting back expenses does not need someone whose primary focus is Research & Development (ie there is nothing to research and or develop :D). I guess the first thing I need to do is come up with a new username :D.

Not that anyone really cares about my personal problems, but my wife was amazed that I have not lost my mind yet. Not only am I most likely going to be unemployed on Friday, but we have a new baby due any day now, my writing deadlines are approaching fast --and of course I am behind schedule, and our server blew up last week forcing me to spend all weekend trying to retrieve data instead of writing. Its a good thing I don't drink :D.

If you want to compare country's economies... Afghanistan is a real growth economy right now. Invest there.

Not that anyone really cares about my personal problems, but my wife was amazed that I have not lost my mind yet. Not only am I most likely going to be unemployed on Friday, but we have a new baby due any day now, my writing deadlines are approaching fast --and of course I am behind schedule, and our server blew up last week forcing me to spend all weekend trying to retrieve data instead of writing. Its a good thing I don't drink .

I would hire you, but I don't think I could afford your salary. :-)

I am pretty sure you will easily find something. Good luck. :)

well, bush is now promising an investigation.

hope it turns out as well as the enron investigation he initiated does. oh, oops.

Originally posted by UmBillyCord


I would hire you, but I don't think I could afford your salary. :-)

I am pretty sure you will easily find something. Good luck. :)

That's the big problem I have, is that I have had job offers, but all at $15k less than what I make...that doesn't work :D.

Maybe I will post my resume in the job offers forum and see what I get :D.

Originally posted by skylab
well, bush is now promising an investigation.

hope it turns out as well as the enron investigation he initiated does. oh, oops.

Don't expect too much. The same group of people investigating Enron and soon WorldCom -- i.e., Congress -- are the same thugs who mismanaged, stole and basically lost $17 billion worth of social security tax money. All of that is our money, folks, not just the money of a handful of salivating investors. It puzzles me how nobody went to jail and nobody lost their job over that little charade.

Originally posted by uuallan

That's the big problem I have, is that I have had job offers, but all at $15k less than what I make...that doesn't work :D.

Maybe I will post my resume in the job offers forum and see what I get :D.

In keeping with WHT's tradition of being the Marketplace Of Last Resort, I'm sure the offers you'll get will be about $60K less than you're making. :D

Originally posted by alchiba


In keeping with WHT's tradition of being the Marketplace Of Last Resort, I'm sure the offers you'll get will be about $60K less than you're making. :D



yeah. and then they'll want you to be at work 100% and be able to route your time and energy to another project immediately upon your taking a break from another project.








ok. sorry. bad dedicated server joke.

Originally posted by uuallan

Maybe I will post my resume in the job offers forum and see what I get :D.

Done:

http://www.webhostingtalk.com/showthread.php?s=&threadid=57338

I expect to be innundated with offers before I go to bed tonite :D.

good luck with that. you may want to hit up some of the other webhosting forums (even though they're small but growing) and post there as well.

i think i'll change my signature to:


HIRE HIM: http://www.webhostingtalk.com/showt...&threadid=57338


i don't think it would help very much though. =(

Originally posted by rally
I wouldn't go so far as saying the government

I would. Our own municipal government here in Nashville, TN may have to shut down later this week because of mismanagement/lack of funds. Legislators should have to go to jail too; not just private citizens that get caught.

Originally posted by chrisb


Legislators should have to go to jail too;

This is the main problem unfortunately, enron is a classic example, they all seem to get cover behind the 5th amendment:(

Originally posted by skylab
it's just a shame the economy will continue to go in the toilet, all these corporations will go bankrupt, CEOs will keep getting huge bonus and severernce payouts, thousands will be laid off.

and yet, the cost of living just seems to rise and rise and rise. hmmm.

but it's interesting to note that cigarette and booze companies never get themselve in this mess.

I've had bought Philip Morris back in 1987 ( 4 days before the crash ) and have held onto it ever since in divended reinvestment. I think that has been my best long term performer.

don't get me wrong I love going short ( infact I very good at that ) but cig and booze companies always win in the long term.

Mike

Originally posted by ADEhost
don't get me wrong I love going short ( infact I very good at that ) but cig and booze companies always win in the long term.


Yes, the so-called "sin funds" seem to be some of the strongest and most resilient investments. Why? Enron and WorldCom can go belly-up with barely a shrug from the average Joe, but don't you dare try to take away his smokes, his guns or his beer. :D

Mike - a kindred soul:I love going short ( infact I very good at that )

Its about all I do...

But I can't bring myself to buy MO or even short it, being somewhat of a militant anti-smoker.

(No flames please, no one can influence me on this. Besides having numerous family members die due to issues directly caused by smoking, our family also owned hundreds of acres of tobacco farms for several generations. Thus I have an interesting set of experiences and insight into the biz.

I think its disgusting that we allow such companies to market such harmful products and worse, once they are pushed out of the norm of the daily life of westerners, the third world will / is their largest growth market and they exploit the heck out of that.)

Hey there's a reason why 'he' is called Joe Six-Pack.

-- J6P

Originally posted by mwatkins
I think its disgusting that we allow such companies to market such harmful products

OT, but one little comment. . .

If the government wanted to ban tobacco, it would. But as it stands they've found they can tax the product to death and not impact sales at all. There's just too much tax money and future lawsuit money to be made right now for the government to ban it. Now that's what is disgusting.

Originally posted by mwatkins
Mike - a kindred soul:

Its about all I do...

But I can't bring myself to buy MO or even short it, being somewhat of a militant anti-smoker.

(No flames please, no one can influence me on this. Besides having numerous family members die due to issues directly caused by smoking, our family also owned hundreds of acres of tobacco farms for several generations. Thus I have an interesting set of experiences and insight into the biz.

I think its disgusting that we allow such companies to market such harmful products and worse, once they are pushed out of the norm of the daily life of westerners, the third world will / is their largest growth market and they exploit the heck out of that.)

ahh 2 points,

it's not fair to request a standstill on flaiming after your comments. you struck a match now withstand the fire.

if you trade MO do it on a basis of volitility. I have a trading program for MO that I've run on excel now about 7 years, I still get good returns from it both on the long and short side. profits are profits and you never go broke making a profit.

Mike

Well people can flame me if they want, but they will lose the arguement LOL I've had a lifetime of preparation.

Re trading volatility - I'm in agreement with you just not the target, as I can't get past the fact that its MO.

I'm not that much a stick in the mud on this issue, I do after all trade the S&P futures, among other things, and there's a few bad boys in the index. Easier for me to ignore however, a contract is a contract and I'm not in it for investment purposes.

Or for very long ;)

I do miss 99/2000/2001 - especially those days up and down when the NDX would move > 100 points. Very nice trading.

Originally posted by uuallan


It is 17,000 and it is supposed to happen Friday.

It happened...I got whacked, along with everyone else in my department.

Originally posted by uuallan


It happened...I got whacked, along with everyone else in my department.

Dang. Sorry to hear man.

I wish you luck with your new job search. ;)

Originally posted by uuallan


It happened...I got whacked, along with everyone else in my department.


OUCH

mike

http://www.opensecrets.org/news/worldcom/index.asp

http://www.bushwatch.net/enron.htm

I knew MCI/Wordcom would start to fail later on down the road when they stopped those Joan Rivers commercials. "Can we TALK!" :)

Originally posted by mwatkins
...being somewhat of a militant anti-smoker.

(No flames please, no one can influence me on this.)

Now, why could I could have guessed that you'd be on the opposite side. Me, "I'm somewhat of a militant smoker. Oh, and 'No flames please, no one can influence me on this.' " :)

today after the shares were back on the marketing floor again, it fall of 97%!!!
Symbol Last Trade Change Volume
WCOME 2:45pm 0.07 -0.76 -91.57% 1,221,645,440
ouch!
and the shares will get de-listed on friday the 5th (juli)
http://biz.yahoo.com/rb/020701/worldcom_delisting_1.html
really heavy news. i do wonder how long it takes until they'll have to fill chapter 11

yes, 1.5billion shares were traded in worldcom, which the nasdaq does on a normal day for the whole of the nasdaq index. Also imho the art of shorting should be taught in schools, because the markets are not gonna stabilise for sometime to to come.
Some new interpretations of some very common terms:
CEO: CHIEF EMBEZZLEMENT OFFICER
CFO: CORPORATE FRAUD OFFICER
EPS: EVENTUAL PRISON SENTENCE