WorldCom Hope Ebbs Thanks to Ebbers' Loan

WorldCom's (WCOM) going with a whimper, not with a bang. Outgoing CEO Bernie Ebbers will now sell all of his stock, knocking this pathetic equity down even lower than it is.

But the company isn't about to default right now. It still has too much cash. In fact, the speculator in me wants to buy some WorldCom stock on the big Bernie Ebbers print that is inevitably coming -- the one where he sells all of his stock to meet the big loan the board foolishly made him -- and then flip it when people realize that the stock is still a call on an ongoing enterprise, even if it is an enterprise that will default down the road if nothing changes.

In short, WorldCom actually has breathing room. It can do some things to try to save itself before its ticking time bomb of debt goes off. (The first big payment on debt isn't due until next year. That's when the problems will really hit home unless WorldCom chooses to deal with them now.)

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James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made.

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