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Technology Stocks : GST Telecom (GSTX) 4th quarter earning
GSTX 0.01000-33.3%Dec 3 10:47 AM EST

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To: beio who wrote (23)3/31/1997 2:25:00 PM
From: Robert Butcher   of 369
 
Jack,
This is a definite looong term issue. I went in at 10 some time ago and am not in the least concerned with the present value. Why?

Capital outlay. GST will not be profitable for some time. The company is currently in an orgy of building an installed base. Personnel,tools and equipment,easements and rights of way,etc..This is first hand knowledge as our company uses GST's fiber service. We required a DS-1 circuit between a main site and a small ancillary building.GST built the fiber span from scratch. All the underground boring, trenching for just a T-1. But..... future capacity for multiple DS-3's! All on GST owned fiber. At this point, the company is constructing an 8 mile fiber hop to our other main facility. Again, probably only our existing 8 microwave T-1's switched over to GST at this time, but in the future(and we will soon be very bandwith intensive),at least 1 DS-3. All billable in increments as we request more space.

Really not much different from all the cable operators in the '70's.
Took a long time for all the coax installation and labor to pay for itself(now a million times over).

Robert Butcher

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