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Technology Stocks : GX Investors Thread

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To: qveauriche who started this subject	10/18/2001 1:19:39 AM
From: Bonzo	Read Replies (1) of 586

KBRO comments echo my sentiments regarding AX and its principal outside shareholders: GLOBAL CROSSING LTD. (GX $1.36; BUY; $18 TARGET) claims that it is still well funded assuming sales of Global Marine and IPC for $700 million-$1 billion. We look for Global Crossing to (1) seek covenant relief to avoid distress; (2) guide for 2002E adjusted EBITDA of $1-1.2 billion, including consolidation of all of Asia Global Crossing (AX $0.79); (3) recut exposure to leases of Exodus (EXDSQ $0.15) to $25 million per year; (4) show traction in enterprise business aided by new leadership of industry veteran John Legere. Global Crossing should exit 2002 with $1 billion in cash assuming capex is brought down to adjusted EBITDA levels, which makes sense since the company™s network is basically complete with the exception of EAC. We continue to believe AX shares, arguably worth $3, may be the best way to play Global Crossing, assuming major investors Microsoft (MSFT $58.45) and Softbank protect their 16% interests in Asia Global Crossing and block sale of that company to Global Crossing unless the price and risk are in their favor.

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