RE: GX
Looks like it is turning out to be more than just a stock candidate for a swing trade. The recent news of the $300 million with Swift is significant. It is an attestment on the validity of GX's global business strategy. The company is expecting revenue and EBITDA to grow 45% this year. It has laid 100,000 miles of cable globally, and the global project is 85% completed.
The way I see it, the next boom phase after "arms merchants" the likes of Cisco, Nortel, Corning, JDSU, would be for companies that OWN the fibre. Arms merchants (read CISCO, and Nortel) will still grow, however, not at the 60% rate that we've seen this year. Super growth would peter off to perhaps more like 30% annually. The stocks are still expensive until the peg ratios come down to around 25% to 30%. Meanwhile, the next boom phase in the fibre optics world should surely be in companies that own the fibre. They are at the 1st inning of the game.... the cash cows of this year and next year. Light up the fibres and collect the cash.
Critics and naysayers say that perhaps there is just too much laid fibre. A valid concern... but then, I'm thinking..... is there such a thing as saturation of corporations needing data intelligence and consumers needing entertainment? IMO, we ain't seen nothing yet. We're still in the days of black and white TV.
And adding icing to the cake, stock is on a primary uptrend after a Vic123 reversal.
Disclosure: I hold GX stock |
