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Technology Stocks : GX Investors Thread

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To: BWAC who wrote (34)	8/23/2001 1:20:31 AM
From: Spekulatius	Read Replies (2) of 586

BWAC -here are some late comments: >> Assets are also required to be shown on the books at the lower of Cost or Market Value. << There is no market value for GX's assets. The "market value" of GX would only be know if GX decided to liquidate itself. In the absence of a market value, GX will stick to a predetermined depreciating schedule. Is it obvious how fast GX depreciates its assets? Does anybody know the answer? >> When the current in place network is fully depreciated ($11 Billion worth of depreciation) and still producing revenue will you argue that it has no value at all? << GX network will never be fully depreciates, because GX has to buy new equipment to keep its network up to snuff. How much does it cost to keep GX network state of the art? My estimate is that at least 2B$ of capex is needed to keep it modern - if GX decided not to invest in capex, they would be hopelessly outdated in 2 years, given the technical progress in fiberoptics. Indeed, at this point it is not proven if GX can produce any free cash flow at all (after paying capex and debt)

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