Morgan, such a long posting, but certainly has good points for pondering. But first, why Sir Francis Drake? I see you with a long white beard from medieval England.
Let me add more points for us here to ponder on. I think GX longs are confused and disheartened at what has happened to the stock price and they long for reasons and answers. Why has the stock dropped to such a pathetic, lowly, unloved pizza with no toppings level? What has caused such dissatisfaction liken to an itch that we cannot scratch? Where is the weakest link?
GX is still the world's first integrated global IP-based fiber optic network. It has completed building the global network, it is selling and will be selling capacities worth billions of dollars to the world's largest carriers, it has gone up the value chain by selling directly to enterprise customers, and yet the stock has gone taken a beating. True investors want to know why, why, why?
Is there something truly wrong with the company that long term investors are not aware of? Does the chart know something that the best analysts cannot detect based on the information now available? Do insiders have a different set of information than outsiders? Are we being paranoid and ambulance chasers? In short, why $60 when the company was a fledgling and $6 when it is a grown bird flying with strong wings?
OK, so we may have worn rose-colored glasses at the beginning figuring that GX is the best thing since sliced bread with its global IP network. We didn't anticipate excess capacity and falling prices. Now, we worry about what if it can't sell enough to pay off interest on the borrowed money. We worry that Q2 may be a trend and not an occasion. We worry whether it can continue to steal enterprise customers away from WCOM, T, Q and others. We worry, worry, worry. Is this the weakest link, we worry too much, and others worry with us?
Is it the unfounded worries causing the stock dilemma, or are there real justifications behind the worries. Curious minds want to know. |
