Global Crossing - GX (formerly GBLX) Message Board

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Technology Stocks : Global Crossing - GX (formerly GBLX)

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To: mthomas who wrote (1984)	9/20/1999 9:06:00 AM
From: AurumRabosa	Read Replies (1) of 15615

Take off your rose-colored glasses and go read their last quarterly report: sec.gov Perhaps they're going to buy back the $500 million dollars of Mandatorily Redeemable preferred stock. Either way you talk about paying down debt, what about the $560 million of long term debt or the $797 million of Senior Notes? They have tons of debt tabulated showing that it extends many years into the future at interest rates of 9.6%, 10.5% and 12.2%. They've extended well into the trash end of the junk bond spectrum not to mention their large foreign exchange liability. The belief that stock buy backs raise the common share price is a myth. "Heck, pay down the debt with the profit from the stock purchase :)" When a company buys back their own stock it becomes Treasury Stock and they book no profit. What are you talking about? I don't see any reason to believe this $500 million stock buy back is a benevolent act in support of common shareholders but more likely a ploy to further enrich insiders and increase their ownership share. Perhaps it'll support the price while insiders sell stock. I recommend reading their SEC filings and looking inside the toga to see what might really be going on.

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