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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area

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To: Crossy who wrote (27480)	3/21/2007 8:44:46 PM
From: Crossy	Read Replies (1) of 37387

re: GLBC - Global Crossing $30 (Telecom) well, on the telecom front, I really like GLBC at this point. These earnings numbers from Thursday were TOO good. I could have saved 8% if I bought sooner, but I wanted to reduce my risk and see their quarterly first. They are traded on the regular Nasdaq, ticker GLBC .. Gross margin now > 50%, they became EBITDA positive in Q3 (extending into Q4), growing top line nicely finance.yahoo.com globalcrossing.com Guidance to even more growth ahead and BS analyst said guidance is conservative... IMHO, GLBC looks more and more like LVLT. Both have a global network, optimized for IP traffic.. which sets them miles apart from other conventional carriers. GLBC is also majority owned by ST Telemedia (Singapore Telecom, the dominant carrier in Singapore). They cannot be acquired by Private-Equity leeches for peanut such as a 30% premium since Singapore Telecom is the majority owner. Their network took more than $8bn to build if I remember it correctly, which should be a good approximate midterm target (replication value). In fact I listened to the CC replay, more than 30 minutes yesterday night and I was mightily impressed the whole firm has a marketcap of $1Billion and after the Impsat acquisition, debt levels of $1.2bn EV is thus $2.2bn guiding to revenues next year of $2.2bnalso. Gross Margin is > 50%. Top line growth 10-20% etc... files.shareholder.com GLBC is a very similar business model as LVLT - both being IP-centric, yet there is a huge gap in valuation.. EV/R for LVLT is around 6 now. It'S around 1 for LVLT... Over the midterm I see a 3-5 bagger potential in Global Crossing if they execute according to plans... rgrds CROSSY

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