- Fidelity Mid Cap Fund files 12.6% holding today on EDGAR
- Broadwing has proforma 1st qtr cash of $348.2 million in the bank.
- They are looking at a variety of acquisitions to add customers
- There are both internal and external candidates for CEO under review
- Company was $2.3 M adjusted EBITDA positive last quarter
- Company has evolved from an equipment company (Corvas) to a service provider
- They bought an asset from Cinncinati Bell that costed $5B to build for approx. $71 M
- They purchased Focal to broaden their services to small and medium customers
- In 2004 the company raised money with a Toxic convertible that was not a good deal and should not be confused with the recent good convertible that actually sold at a premium to the market price with a conversion price of $16.60 around May.
- The new convertible has a 20 yr life and interest is only paid in cash and Not stock as many short sellers or panic sellers may believe (this is where some confusion arises with panic sellers who remember the deal they did in 2004)
- Because of the Focal acquisition they were able to sign a deal with AOL recently
- Also, because of their partnerships with AOL, HTX and GLBC they will have the ability to sell their services to others more easily and more credibly
- Broadwing is following through as planned with their strategic plan to achieve higher margins
- The goal now is to drive more traffic to the network and adding customer density to achieve higher margins
