From Thompson I-Watch Market Commentary:
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Special Commentary | Morning Update | Intraday | Market Wrap
GX -- Telecom Svcs-For -- Technology
14-Nov-00 10:46:31 Global Crossing (GX), which provides voice, data, and Internet services in Europe and North America, released its 3Q results late yesterday. GX reported a narrower-than-expected loss of $0.65 compared to the First Call/Thomson Financial consensus estimate of $0.79. Revenue soared to $1.01 billion from $235 million. The results were aided by acquisitions of Frontier, Racal Telecom, and IXNet. Several Wall Street analysts have praised the company's report this morning. Goldman Sachs reiterated its "Recommended List" rating, believing that the Global Crossing's strong business momentum should help the company beat 4Q estimates. Deutsche Bank added that investors have unfairly punished GX (the stock is down more than 60% on the year) and reiterated its "Strong Buy" rating. Today, GX has climbed $9/16 or 3.2% to $18 3/16. Trading is active with 3.6 million shares already crossed compared to the daily average of 12.4 million shares. Including the opening block of 740k shares, 70% of the volume stems from block trades, nearly double GX’s daily average of roughly 36%. The I-Watch pre- trade chart shows that institutional brokers continue to bid for large blocks of stock at current prices, suggesting that today’s rally has institutional support. Additionally, the I- Watch post trade data reveals that institutional money is flowing into GX: institutional brokers have reported 1.3 million shares as buy transactions, 20k shares as sells, and 850k shares as cross trades. Although one day of institutional accumulation does not reverse the distribution of the past year, today's price action is a positive indication for GX. |
