Robert's Cure for Cancer=Hype?
It is amazing to have read Robert's exaggerated boasts for some time. Does anyone recognize the fact that his claim of being a money manger requires us to believe that he has held Global Crossing from $60 to $4? It is amazing that Robert can toss out a few figures from GX's website and he woos readers on this thread. Robert has never admitted he has been wrong. That's the bottom line. Anyone can pick the wrong stock, but if one is wrong, then admit it.
ACCOUNTABILITY:
1) Anyone who has invested in this company has been financially embarrassed. Nothing wrong with that -- it happens to everyone at some point -- but at least have enough integrity to admit you are wrong.
2) Robert has an answer for every GX issue: insiders sell because they don't care what price they sell at (see below); the government contract of today isn't an issue, it's the brokerage firm's issue ("beware" as Robert says); revenues are due to the economy; management has been paid excessive fees/bonuses (i.e. Exodus sale) -- but that's OK with Robert.
Robert's explanation to the lost contract of convenience:
Message 16225125
"As I said last night. Be careful of what CSFB says. As of this writing, they appear to be DEAD wrong. The issue was that the incumbents that were not awarded the contract were not notified one by one of why they lost (they were notified en masse). This is what the 90 day review is being called for - protocol. Ten days from now GX will have a chance to respond to the accusation and I'm sure it will officially go away ~90 days from now."
Explanation for GX Insiders Selling:
siliconinvestor.com
*why did they sell in the first place if the price is "rediculously low"*
"I have held my tongue due to my concern of sounding elitist, but here is one line of reasoning:
Take a look at the net worth of the average person or group doing the selling. They are multibillionaires. I know three such people, and am familiar with numerous others. On average I would guestimate that each spends somewhere in the neighborhood of $20M-$40M a year just to “get buy” (For example, it takes a lot of capital to keep your G-5 flying or 150ft yacht floating). They live on a different level than most reading this. For them selling $10M, $50M, or even $125M does not really amount to much. In fact it may barely show up on their radar screen.
To those reading this that sounds like real money. And gosh, they must be selling for some devious reason (remember ~ don’t trust those money grubbing rich!). But in all reality it is a fraction of their net worth. Also, the reality is that most of these folks have a terrible record of timing. Most do not care about the true value of a $10M-$125M piece of their wealth. For example for someone worth $2B, $10M is merely 0.5% of his or her net worth. So what if the investment is worth three fold higher – it still barely amounts to anything. What if they have this really good deal that will get them a guaranteed rate of return in a short amount of time? What if they are like most individual investors and get tired of looking at a loss on their balance sheet? What if, as in the case of the GX founders, their cost basis is (on average) <$0.125 per share? (By the way, due to special tax treatment they can often redeploy the proceeds without incurring capital gains)
Have any of you reshuffled your portfolio recently thinking that 1% or 3% of some position really should be reallocated? Well that decision is not very different than what most of the insiders at GX have been doing.
We are shaped and attacked by “convention wisdom” and “political correctness”. The former infringes on our independent investment thought while the latter impinges on our ability to feel generally good about wealth (notice my own hesitance at the beginning of this note). Conventional wisdom tells us that under the Regan Administration our great nation went deep into debt. Political correctness tells us that only the rich prospered during this time period. The fact is that debt as a % of wealth DECREASED during the Regan Administration and INCREASED during the Clinton Administration (heck, $5T disappeared last year alone without debt going down hardly at all). These constricting thought processes also hold that if an “evil” insider sells they are trying to screw us to leave our accounts poor. Some have even referenced that insiders at Level3 had these intentions. Hey, if they saw this economic storm forming, I will be the first to introduce them to the Bush Administration as a replacement for ALL the Fed Governors as well as Mr. Greenspan.
I really believe that the recent insider sales are more a case of insiders acting like many investors, but that it is on a much different scale.
WE HAVE NO CONCRETE INFORMATION TO THINK OTHERWISE.
Take care."
Robert declares GBLX is one of the greatest wealth building companies of our time
siliconinvestor.com
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*GBLX spent significant amount of money to upgrade and build new web hosting centers for GC after the acquisition from Frontier. Next to nothing is not accurate.*
HUH?
Let us see . . . they spend $300 per square foot to build the 314,000 square feet of centers (as of 3/31/2000 – I figure another 210,000+ with the recently announced Miami and Herndon centers) and are leasing them out for $1000+ per square foot per year (so they have trippled their money already on the 314,000 square feet). Now after at least a year of AVERAGE service for the 314,000 square feet in service they are selling the centers for – get this - $12,405 per square foot built. Now this is an oversimplification, but in my book the nuts and bolts of Global Centers were obtained as an after thought in the Frontier acquisition. Going from pennies to $12,405 does constitute NEXT TO NOTHING.
I apologize (really – I am not being sarcastic) if I sound overly harsh, but GBLX is one of the greatest wealth building companies of our time. Lets think a bit more about the implications of our statements before we shoot our thoughts out into thin air."
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