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Technology Stocks : Global Crossing - GX (formerly GBLX)
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To: M. Frank Greiffenstein who wrote (1592)8/31/1999 6:47:00 PM
From: quidditch  Read Replies (2) of 15615
 
Doc,

The interesting element regarding the protracted pressure on the share price of GBLX is that the market apparently is bidding GBLX down on the assumption that it will have to add cash or stock in order to salvage the deal at the agreed exchange ratio. (FRO has been under pressure because of the underperformance of its LD unit as well as the fear that the GBLX offer that supports the price will be withdrawn or terminated.) None of this is new news.

But the conundrum to all this is that, if the deal does get done under the original terms, or at least it is perceived that it will get done, much of the price pressure on both stocks will be alleviated. "If you believe, they will buy...(with apologies to Field of Dreams)." This is why management for both companies must fight the good fight for the time being until the market exacts its toll. A self-fulfilling prophecy.

Addition to the NASDAQ 100 will help change the prophecy/psychology, hopefully.

If one believes in the GBLX business model, I agree that this would be a good time to buy. Have not sold a share through this entire, somewhat distasteful Kabuki theater. Although I can't say that I'm proud of not having tendered into the USW offer, I didn't want to take the short-term gain hit.

Regards. Steven
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