R'lyeh, 4th of December Xerox (XRX) dropped under 5 dollars near to a 20-years low after Moody downgraded its debt to junk. Its stocks is now yielding more dividends than junk bonds. Investors are apparently afraid of a bankruptcy here, and are not reassured by the company's "restructuring" plans. Xerox plans to sell 4 billion worth of assets but is now worth less than that because these sales will be needed just to keep the company in business. The company is a showcase of the credit troubles that await America. Not only has the company been borrowing like an Asian Tiger but the stock is also hurt by its liberal leasing practices which helped its stock top 60 last year. During a slowdown, when customers return your products, leasing becomes a curse. Xerox is far from beign the only indebted company engaged in aggressive leasing or in selling on credit. Lucent (LU) in another well known example. This company's stock is now at 15 dollars or down more than 75% for the year. Tech flagship Cisco Systems (CSCO) has been unable to return above its famous 50 dollars "support level" today and is down nearly 5%. One can also note that CMGI (CMGI) dropped under 10 dollars and is now down more than 75% over the last three monthes and more than 90% from its highs. These stocks are nevertheless still worth a lot more than what they were worth three years ago. Today's euro bounce may also be signalling something... Chtulu Ftagn! _______________________________________________ Crashlist resources: http://website.lineone.net/~resource_base To change your options or unsubscribe go to: http://lists.wwpublish.com/mailman/listinfo/crashlist
