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Technology Stocks : Global Crossing - GX (formerly GBLX)
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To: HW Bowman who wrote (13025)8/2/2001 1:59:37 PM
From: Ally  Read Replies (3) of 15615
 
>Ally, I missed the CC, but your post is very solid. I only question your point #3 in that whether it is an IRU sale or lease is just a tax distinction pertaining to current deductibility and the timing of realization amounts. So much of GX is the maximization of tax benefits to the detriment of the (non-tax) financial statements that govern at earnings announcement time<

The issue pertains more to "cash flow" rather than tax considerations. If you recall, the concern of the First Boston's analyst is that a shift from IRU to shorter term leases will cost a cash flow shortfall for capex funding. Bond holders should be happier that GX has increased forecast on IRU sales.
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