SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Global Crossing - GX (formerly GBLX)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: DukeCrow who wrote (12734)7/23/2001 10:46:19 AM
From: CF Rebel  Read Replies (3) of 15615
 
Duke,

"I would argue that a responsible company following a rational business plan wouldn't need to rely on its stock price to keep the business running smoothly. Any damage done to the company isn't real but imagined."

The fact that GX has executed in such a negative environment is proof that it is a responsible company. But, if you think that legitimate access to the capital markets for early-stage companies is imagined, you're dreaming. You seem to believe in the "efficient-market" theory - whatever the market thinks is right and has no costs. On the contrary, the markets are generally inefficient and shorting, with it's negative effects, makes them only more so. You won't find an investment banker who'll say stock price doesn't matter when raising capital. And, it matters chiefly to shareholders who face greater dilution than would otherwise be necessary.

This Labor Day weekend will mark the second anniversary of the Barron's "Bandwidth Glut" issue which was the first major business journalism round fired at GX. The issue of there being a bandwidth glut was extensively discussed and doubted on this and other boards long before that and since. The most recent reports continue to debunk the glut talk. That isn't to say there isn't a glut of bad business models in the emerging telecom sector. But, the fact is that this company has met or exceeded all guidance before and in the two years since the Barron's trash piece. The problem with the Street and it's journalists is it's irrationality in the face of facts. Due skepticism is one thing, but the Religion of Bandwidth Glut has continued to hold sway. This is not "imagined."

CF Rebel
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News