That was a huge slam. As huge as GX is getting today in this positive market :)? Amazing selling pressure. I guess Tom was right when he said in the CC, that one of the reasons he's not afraid of the competitors at this point, is because he anticipates that it'll be hard to raise capital to complete all those competing networks. Why? Because as he put it, in the current climate, they'll be capital constrained. Translation: won't be able to raise capital from the market among other sources. If this will be a pretty long term situation, as Tom implied, then what does that mean? Well, we know one thing - it being hard to raise capital for fiber in the market, means stock prices will be low, thus shutting down secondaries. But low stock prices, is not exactly happy news for shareholders, never mind that it may be good for the BUSINESS of GX (in that it hamstrings competitors). So, when I listened to the CC, my reaction to Tom's anticipation of a longer term "capital restraint" in the market was: hmmm, does that mean GX price will continue to suck wind too? Oh well, I guess sitting here at 17 1/4 gives us the answer at least for today, or for this moment!
Morgan |
