Global Crossing rant: see below
Aside from the recession in technology stocks over the past 18 months, particularly within the fiberoptic sector, Global Crossing has its own unique problems.
Global Crossing has been "blessed" with some of the worst leadership and management in the tech sector. They have had a revolving door of CEO's, who have stayed just long enough to line their pockets at shareholder expense. During the tech bubble, their arrogance and complete disregard for enhancing shareholder value stands out, even amongst the excesses within the tech sector. At the bubble height, they were handing out stock options and shares by the millions, for the most frivolous of reasons, greatly diluting the worth of the stock.
Although they were able to get away with this during the tech stock mania, two things have changed. Obviously, the pricking of the tech stock bubble is first and foremost. However, they are no longer the only game in town. They now face formidable competition from Tycom, the fiberoptic division of Tyco International. Unlike the bozos who mismanage GX, Dennis Kozlowski is one of the brightest and most aggressive CEO's around and he and Tycom will eat GX's lunch.
The demise in GX's stock price is a reflection of the fact that investors have awakened to GX's shell game and have zero confidence in their management. Even when the tech sector regains investor favor, GX will not recover in the same manner that top tier tech stocks with talented management (SEBL, AMAT, EMC) will.
Just my thoughts.
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